Kraatz & Craig Surveying Inc. v. Commissioner
United States Tax Court
P's only activity is land surveying in Tennessee. P does not employ any licensed engineers, is not associated with any firm that employs licensed engineers, and does not provide any services that State law requires to be performed only by a licensed engineer. Pursuant to sec. 1.448-1T(e)(4)(i), Temporary Income Tax Regs., 52 Fed. Reg. 22768 (June 16, 1987) (the temporary regulation), engineering includes surveying and mapping.
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P's only activity is land surveying in Tennessee. P does not employ any licensed engineers, is not associated with any firm that employs licensed engineers, and does not provide any services that State law requires to be performed only by a licensed engineer. Pursuant to sec. 1.448-1T(e)(4)(i), Temporary Income Tax Regs., 52 Fed. Reg. 22768 (June 16, 1987) (the temporary regulation), engineering includes surveying and mapping. R determined that P's land surveying constitutes the performance of services in the field of engineering pursuant to the temporary regulation and that, therefore, P is…
1Opinion of the Court
OPINION
Dawson, Judge:
Respondent determined a deficiency of $9,762 in petitioner’s Federal income tax for its tax year ending December 31, 2005. In the notice of deficiency, respondent determined that petitioner is a qualified personal service corporation under section 448 subject to a flat 35-per-cent income tax rate under section 11(b)(2). Whether petitioner is a qualified personal service corporation depends upon whether petitioner’s sole activity of land surveying constitutes the performance of services in the field of engineering for purposes of section 448.
Background
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