- 4 - all of the activities of which involve the performance of services in the fields of * * * architecture.” In this case, petitioner and respondent agree that petitioner’s business satisfies the function test. With regard to the ownership test, respondent contends that petitioner also satisfies the ownership test; petitioner disagrees. Section 448(d)(2)(B) defines the ownership test as where: (B) substantially all of the stock of which (by value) is held directly * * * by– (i) employees performing services for such corporation in connection with the activities involving a field referred to in subparagraph (A) In interpreting the ownership test of section 448(d)(2)(B), section 1.448-1T(e)(5)(i), Temporary Income Tax Regs., 52 Fed. Reg. 22768 (June 16, 1987), as amended by T.D. 8329, 56 Fed. Reg. 485 (Jan. 7, 1991), and T.D. 8514, 58 Fed. Reg. 68299 (Dec. 27, 1993), further provides: A corporation meets the ownership test, if at all times during the taxable year, substantially all of the corporation’s stock, by value, is held, directly or indirectly, by– (A) Employees performing services for such corporation in connection with activities involving a field referred to in paragraph (e)(4) of this section, * * * * * * * For purposes of this paragraph (e)(5), the term “substantially all” means an amount equal to or greater than 95 percent.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 NextLast modified: November 10, 2007