Investment Research Associates - Page 264




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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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