- 7 - the years at issue. Mr. Stewart has not shown that he performed those services as an employee or independent contractor of the corporation. Mr. Stewart was not paid by the corporation as an employee, independent contractor, or executive in 1995 and 1996, and it does not appear that the corporation ever compensated him for the general management services he performed in 1995 and 1996. There was no employment agreement between Mr. Stewart and the corporation, and there are otherwise no records which show Mr. Stewart provided the services in any capacity as an employee of the corporation. Also, there is no documentation showing the number of hours that Mr. Stewart spent providing the management services to the sole proprietorship. There is no reasonable basis to distinguish the services that Mr. Stewart provided generally to his sole proprietorship and those that he might have performed through the corporation. And, there is no reasonable basis for us to find that the corporation or any of its employees actually rendered services to the sole proprietorship in 1995 and 1996. Petitioners point to the management fee agreement between Mr. Stewart and the corporation. The agreement does not specify or otherwise describe the management services to be performed by the corporation, and the “annual retainer” does not relate to any services actually to be rendered by the corporation. The agreement was not the product of arm’s-length negotiations. ThePage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011