- 7 -
administrative and support services incident to such activities.
Id.
Petitioner makes several arguments why it does not meet the
function test, all of which we reject. Petitioner first argues
that it is a facility, not a person, and therefore cannot provide
“personal” services. Petitioner’s literal argument is contrary
to section 448 and the regulations promulgated thereunder. For
purposes of the function test, a qualified personal service
corporation is a corporation whose employees perform services in
a qualifying field, including health. See sec. 1.448-1T(e)(3)
and (4), Temporary Income Tax Regs., supra. Petitioner
stipulated that it was established as a professional medical
corporation and reported on the returns for the years at issue
that it was engaged in the practice of medicine. Thus, we reject
petitioner’s first argument.
Petitioner next argues that it operates a treatment
facility, in the business of creating and containing radiation,
rather than a healthcare facility. We find, however, that the
employees who work at its radiation therapy treatment facility
are rendering services in the field of health. The treatment
facility is a healthcare facility because its employees treat
patients’ healthcare needs. Petitioner’s employees provide
radiation therapy to cancer patients, and, petitioner therefore
provides healthcare services.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: November 10, 2007