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has not taken extended vacations, because he must see that all of
petitioner’s work is done.17
We similarly reject respondent’s suggestion that Mr. Myers
by the 1996 fiscal year was no longer putting in long hours for
petitioner because of his cattle breeding and feeding and horse
breeding and showing activities.
Mrs. Myers is petitioner’s only office worker. She has
played a complementary role to Mr. Myers by handling petitioner’s
accounting, administrative, and support functions.18
This factor favors petitioner with respect to Mr. Myers but
is neutral with respect to Mrs. Myers.
C. The Size and Complexities of Petitioner’s Business
The size and complexity of a taxpayer’s business is
considered in determining whether compensation is reasonable.
Pepsi-Cola Bottling Co. of Salina, Inc. v. Commissioner, 528 F.2d
at 179.
17Petitioner’s volume of work generally fluctuates during
the year. In the Denver metropolitan area, the peak periods of
construction include May, June, September and October.
Notwithstanding fluctuations in petitioner’s workload, Mr. Myers
tries to schedule and have petitioner undertake some contracting
jobs throughout the year, in order to provide steady work for
some of his better workers. Because winter temperatures in the
Denver metropolitan area generally do not fall below freezing,
concrete can usually be poured throughout the year.
18Although Mrs. Myers was not a shareholder or officer of
Myers Foundations, she kept its books and prepared its payroll
during its fiscal year ended July 31, 1996. During that year,
Myers Foundations maintained its office in the home of Mr. and
Mrs. Myers.
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