- 10 - In support of his burden, respondent relies upon an opinion letter from the Securities and Exchange Commission (SEC) issued in response to a “No-Action Request” made on behalf of an individual and an organization involved in the sale of securities. According to the opinion letter, the “facts and circumstances” presented, which might or might not be similar to petitioner’s, could result in an SEC enforcement action for violation of the 1934 Act. We cannot help but wonder whether the circumstances described in the opinion letter are, in fact, so similar to petitioner’s that the conclusion reached in the letter has application to petitioner’s situation. Even if applicable, the conclusion is hardly determinative of whether payment of the commission expense should be treated as an illegal payment within the meaning of section 162(c), and the opinion letter, in and of itself, hardly satisfies respondent’s burden on the point. Respondent’s disallowance of the commissions expense deduction claimed on the Schedule C is rejected. Petitioner is entitled to a deduction for commission expenses to the extent the payment of those commissions has been substantiated. To reflect the foregoing, Decision will be entered under Rule 155.Page: Previous 1 2 3 4 5 6 7 8 9 10 11Last modified: March 27, 2008