- 18 - Commissioner, 500 F.2d at 152; Wagner Constr., Inc. v. Commissioner, supra. Petitioner claims that through Darle’s, Rocky’s, and Dean’s exceptional qualifications it was able to maintain fairly consistent yearly sales and remain profitable in a highly competitive industry. Respondent agrees that Darle, Rocky, and Dean did “contribute superior qualifications to the successful operation of the petitioner[’]s business”. A factor that contributed to petitioner’s success was petitioner’s ability to obtain profitable construction jobs. Petitioner obtained jobs primarily by submitting the lowest bid to a general contractor, and Darle was solely responsible for preparing each bid. Darle’s estimate of the cost to complete a job was the most significant aspect of preparing a bid. If Darle’s estimate was inaccurate, petitioner would neither receive the job, because its bid was too high, nor make a profit. Darle therefore deserved high compensation because of his knowledge and experience. Although Rocky was petitioner’s vice president and Dean was petitioner’s treasurer during the years in issue, the facts indicate that they primarily performed the duties of job-site supervisors, not executives. Each has been working for petitioner since the early 1980s and worked between 55 and 60 hours per week during the 1990s and 2000. Petitioner’s financialPage: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
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