- 14 -
(1974); Munford Inc. v. Commissioner, supra at 480; Scott Paper
Co. v. Commissioner, supra at 178; Valmont Indus., Inc. v.
Commissioner, supra at 1072; Catron v. Commissioner, supra at
316; Brown & Williamson Tobacco Corp. v. United States, 369 F.
Supp. 1283 (W.D. Ky. 1973), affd. per curiam 491 F.2d 1258 (6th
Cir. 1974). In this regard, it is appropriate to consider both
the quantity and quality of the human activity within the
structure. See Consolidated Freightways, Inc. v. United States,
223 Ct. Cl. 443, 461, 620 F.2d 862, 873 (1980); Munford, Inc. v.
Commissioner, supra at 480; Consolidated Freightways, Inc. v.
Commissioner, 74 T.C. at 795; Satrum v. Commissioner, supra at
417. If the nature of work performed within the structure is
merely supportive and ancillary to the function of the structure,
then the structure is not considered as providing "working
space." See Valmont Indus., Inc. v. Commissioner, supra at 1074.
In Valmont Indus., Inc. v. Commissioner, supra at 1073, we
considered whether a structure provided "working space".
Considering the quantity and the nature of the employee activity
performed in two galvanizing facilities, we stated:
the proper inquiry is whether "a substantial number of
employees were frequently and regularly occupied" in
the facility. This determination will necessarily
depend upon the nature of the business venture housed
within that structure. [Citation omitted.]
We went on to hold that in the context of that taxpayer's
galvanizing operation, work performed by 10 to 16 employees
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