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familiarity with general business matters and with office and
administrative support functions, having previously worked as a
computer programmer and stockbroker. After joining Mr. Myers in
managing petitioner, she obtained a bachelor’s degree in business
in 1990.
This factor favors petitioner with respect to Mr. Myers but
is neutral with respect to Mrs. Myers.
B. The Nature, Extent, and Scope of Mr. and Mrs.
Myers’s Work
An employee’s position, hours worked, duties performed, and
general importance to the success of the business may justify
high compensation. Home Interiors & Gifts, Inc. v. Commissioner,
supra at 1158.
Mr. Myers was petitioner’s key employee and driving force
from its inception, and his personal services were essential to
its success. He managed and built up petitioner’s business,
solicited and obtained all petitioner’s jobs, and supervised and
was responsible for all work performed.
On brief, respondent argues that, by the year ended July 31,
1996, Mr. Myers had substantially reduced the hours per week he
worked for petitioner, and was devoting a substantial percentage
of his time to the businesses of Myers Foundations and Collins
Concrete. In doing so, respondent relies heavily on a tax return
filed for the same period by Myers Foundations, the foundation
and flat work construction company that Mr. Myers and his son
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