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engaged in business activity. See Moline Properties, Inc. v.
Commissioner, supra at 437. If either factor of the test is
satisfied, we will uphold the corporate form. See Noonan v.
Commissioner, 52 T.C. 907 (1969), affd. per curiam 451 F.2d 992
(9th Cir. 1971); Shannon v. Commissioner, 29 T.C. 702 (1958).
However, we will disregard the corporate form where the
corporation is a sham or unreal. See Moline Properties, Inc. v.
Commissioner, supra at 439.
The degree of business activity required to uphold the
corporate form is “extremely low”. See Strong v. Commissioner,
66 T.C. 12, 24 (1976), affd. without published opinion 553 F.2d
94 (2d Cir. 1977); accord Ogiony v. Commissioner, 617 F.2d 14, 16
(2d Cir. 1980), affg. and remanding T.C. Memo. 1979-32; Lukins v.
Commissioner, T.C. Memo. 1992-569. “[W]hether or not a
corporation is deemed to engage in a business activity does not
depend upon the quantum of business activity but simply whether
the entity engaged in some business activity.” Martin v.
Commissioner, T.C. Memo. 1999-193.
We will not disregard the corporate form merely because a
corporation did not file a tax return. See Kessler v.
Commissioner, T.C. Memo. 1977-117; Kubik v. Commissioner, T.C.
Memo. 1974-62.
It appears that Export had a valid business purpose for 1996
and 1997. Petitioner incorporated Export so that it would appear
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