Ellison v. Commissioner
United States Tax Court
The petitioner exercised a stock option granted to him by the life insurance company for which he was an agent. The agency contract under which he served provided that he was not an employee of the company, but the company retained and exercised the right to control extensively the methods used by the petitioner in performing his work. Held, the petitioner was an employee of the company, and the stock option qualified as a restricted stock option under sec. 424, I.R.C. 1954.
1Opinion of the Court
Simpson, Judge:
The respondent determined deficiencies in the income tax of the petitioner in the amounts of $877.18 for 1963 and $2,247.95 for 1964. The issue for decision is whether the petitioner was an employee of the Investment Life & Trust Co. on August 27, 1957, and continued in that relationship through August 1964, or whether he dealt with the company as an independent contractor during that period. The answer will determine whether or not a stock option exercised by the petitioner in 1963 and 1964 was a restricted stock option as defined by section 424,1 Internal Revenue Code of…
2Cases cited14 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- United States v. SilkSupreme Court of the United States · 1947
- Singer Manufacturing Co. v. RahnSupreme Court of the United States · 1889
- Radio City Music Hall Corp. v. United StatesCourt of Appeals for the Second Circuit · 1943
- National Labor Relations Board v. Phoenix Mut. L. Ins. Co.Court of Appeals for the Seventh Circuit · 1948
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3Cited by39 opinions
- Simpson v. CommissionerUnited States Tax Court · 1975
- Professional & Executive Leasing v. CommissionerUnited States Tax Court · 1987
- Matthews v. CommissionerUnited States Tax Court · 1989
- Leavell v. CommissionerUnited States Tax Court · 1995
- Burnetta v. CommissionerUnited States Tax Court · 1977
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