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and Weisgal were required to account for their time and the
$6,000 fee was based on that time. Although some of the
commitment fees were paid by entities related to Kanter or
Weisgal, the Kanters have provided no documents to show that the
commitment fees paid by those entities were for Century
Industries' consideration whether to purchase investments offered
by those entities.
Century Industries was not a partnership formed by a group
of professionals, such as doctors, lawyers, or accountants,
through which the professionals practice together. Kanter (an
attorney) and Weisgal (an accountant) were the only partners in
Century Industries who were professionals. Each individually
owned only 1 percent of the partnership interests. Their family
trusts owned the remaining 98 percent. Kanter and Weisgal used
Century Industries to assign to the family trusts the fees they
received for professional and promotional services.
We find that the commitment fees were for professional and
promotional services provided by Kanter and Weisgal and that they
are the true earners of the income. Therefore, the income is not
the income of Century Industries, and this Court has jurisdiction
over the adjustments made in the notices of deficiencies.
Respondent concedes that only half of the fees are Kanter's
income. Kanter has not provided time records or any other
evidence to establish that he may have provided less than half of
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