W.W. Eure, M.D., Inc. - Page 7

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          administrative and support services incident to such activities.            
               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.                                               

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