Sebring v. Commissioner
United States Tax Court
P, a bail bondsman, is the agent of the surety that issues each bailbond. The surety is liable to the State for costs and forfeitures experienced if a bonded defendant fails to appear in court. P is required to indemnify the surety for such costs and forfeitures. As security for his promise to indemnify, P must pay to the surety a percentage of the fees collected on execution of the bond. The surety manages the funds collected and acts as trustee of the funds.
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P, a bail bondsman, is the agent of the surety that issues each bailbond. The surety is liable to the State for costs and forfeitures experienced if a bonded defendant fails to appear in court. P is required to indemnify the surety for such costs and forfeitures. As security for his promise to indemnify, P must pay to the surety a percentage of the fees collected on execution of the bond. The surety manages the funds collected and acts as trustee of the funds. The funds may be used solely for the purpose of satisfying P's promise to indemnify the surety. P is entitled to receive back the…
1Opinion of the Court
WILLIAMS, Judge:
Respondent determined deficiencies in petitioners’ 1979 and 1981 Federal income tax of $9,690.23 and $14,020.60, respectively. The taxable year 1979 is in issue as a result of respondent’s disallowance of a net operating loss carryback from 1982. The issues for decision are: (1) Whether petitioner Leslie Sebring, a bail bondsman, may deduct pursuant to section 1621 payments into accounts held as security for his promise to indemnify his sureties and, if not, (2) whether Mr. Sebring earned the funds paid into such accounts.
FINDINGS OF FACT
Some of the facts have been stipulated…
2Cases cited18 opinions
- Hradesky v. CommissionerUnited States Tax Court · 1975
- Frank J. Hradesky v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1976
- World Airways, Inc. v. CommissionerUnited States Tax Court · 1974
- Consolidated Freightways, Inc. & Affiliates v. CommissionerUnited States Tax Court · 1980
- World Airways, Inc., and World Air Center, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1977
13 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- James M. Rankin Shirley Rankin v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1998
- Wages v. Comm'rUnited States Tax Court · 2017
- Barnette v. CommissionerUnited States Tax Court · 1992
- Beck v. CommissionerUnited States Tax Court · 1998
- Sebring v. CommissionerUnited States Tax Court · 1989
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