Legal Opinion

Shaw v. Commissioner

United States Tax Court

Decided December 11, 1972No. Docket No. 2175-68PublishedCited by 11 opinions

1. Petitioner was sole shareholder and president of American and Shaw Ford, was individually licensed as an insurance agent, and individually entered into agency contracts with insurance companies and received payments of commissions therefrom. Held, the commission income is gross income taxable to petitioner under sec. 61, I.R.C. 1954. 2. Petitioner made payments to American and Shaw Ford in amounts equal to commission income received by him.

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1. Petitioner was sole shareholder and president of American and Shaw Ford, was individually licensed as an insurance agent, and individually entered into agency contracts with insurance companies and received payments of commissions therefrom. Held, the commission income is gross income taxable to petitioner under sec. 61, I.R.C. 1954. 2. Petitioner made payments to American and Shaw Ford in amounts equal to commission income received by him. Petitioner did not participate directly in the sale of insurance, but rather, substantially all insurance activity was carried on by employees of the…

1Opinion of the Court

Withey, Judge:

Respondent determined deficiencies in Federal income tax for the joint returns of R. W. Shaw III, hereinafter petitioner, and Inez Shaw, hereinafter Inez, for the calendar years 1964 and 1965 in the amounts of $16,727 and $26,486.84, respectively. By amended answer, respondent has increased the deficiency for the years 1964 and 1965 to the total amounts of $39,064.94 and $36,663.24, respectively.

Petitioner has not put the disallowance of interest deducted in 1965 into issue; consequently the only remaining issue is the taxability to petitioner of insurance commissions received…

2Cases cited20 opinions

  1. Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
  2. Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
  3. International Bankers Life Insurance Co. v. HollowayTexas Supreme Court · 1963
  4. Nat Harrison Assoc., Inc. v. CommissionerUnited States Tax Court · 1964
  5. Commissioner v. First Security Bank of Utah, N. A.Supreme Court of the United States · 1972

15 more not listed; retrieve them via the Exa API.

3Cited by11 opinions

  1. Ross Glove Co. v. CommissionerUnited States Tax Court · 1973
  2. Russo v. CommissionerUnited States Tax Court · 1977
  3. Ronan State Bank v. CommissionerUnited States Tax Court · 1974
  4. McIver v. CommissionerUnited States Tax Court · 1977
  5. In Re FuchsUnited States Bankruptcy Court, D. Colorado · 1995

6 more not listed; retrieve them via the Exa API.

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