Alex v. Commissioner
United States Tax Court
Petitioner James Alex, an agent selling life insurance on a commission basis, paid rebates or gave discounts to purchasers of policies. Held, since petitioner was not the seller of the insurance, the rebates or discounts are not adjustments to the purchase price excludable from gross income but deductions from gross income precluded by sec. 162(c), I.R.C. 1954. Schiffman v. Commissioner, 47 T.C. 537 (1967), overruled.
1Opinion of the Court
Tannenwald, Judge:
Respondent determined a deficiency of $38,444 in petitioners’ Federal income tax for the year 1972. As a result of concessions by the parties, the sole issue is whether rebates and discounts paid by James Alex to purchasers of life insurance policies reduced his commissions and thereby are properly excludable from petitioners’ gross income.
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly. The stipulation of facts and exhibits attached thereto are incorporated herein by this reference.
James Alex (James or petitioner) and Betty Jean Alex are…
2Cases cited5 opinions
- Helvering v. HallockSupreme Court of the United States · 1940
- Max Sobel Wholesale Liquors v. CommissionerUnited States Tax Court · 1977
- Pendola v. CommissionerUnited States Tax Court · 1968
- Pittsburgh Milk Co. v. CommissionerUnited States Tax Court · 1956
- Schiffman v. CommissionerUnited States Tax Court · 1967
3Cited by21 opinions
- Dixie Dairies Corp. v. CommissionerUnited States Tax Court · 1980
- James Alex and Betty Jean Alex v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1980
- Boucher v. CommissionerUnited States Tax Court · 1981
- Mickey L. Worden Virginia L. Worden v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1993
- Ostrom v. CommissionerUnited States Tax Court · 1981
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