Jackson v. Commissioner
United States Tax Court
P, a former insurance agent for State Farm Insurance Companies, received termination payments after his retirement on December 31, 1987, pursuant to the terms of an independent contractor Agent's Agreement.
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P, a former insurance agent for State Farm Insurance Companies, received termination payments after his retirement on December 31, 1987, pursuant to the terms of an independent contractor Agent's Agreement. Held, the termination payments P received were not "derived" from a trade or business carried on by him as an insurance agent during 1990 and 1991. Therefore, such payments are not subject to self-employment tax under sections 1401 and 1402, I.R.C., and P is not liable for such tax. Milligan v. Commissioner, 38 F.3d 1094 (9th Cir. 1994), revg. T.C. Memo. 1992-655, followed.
1Opinion of the Court
WILLIAM R. AND MURIEL G. JACKSON, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Jackson v. Commissioner
Docket No. 23558-94
United States Tax Court
108 T.C. 130; 1997 U.S. Tax Ct. LEXIS 10; 108 T.C. No. 10;
March 31, 1997, Filed
Decision will be entered for petitioners.
P, a former insurance agent for State Farm Insurance Companies, received termination payments after his retirement on December 31, 1987, pursuant to the terms of an independent contractor Agent's Agreement. Held, the termination payments P received were not "derived" from a trade or business carried on by him as an…
Also in this document: Concurrence; Dissent.
2Cases cited24 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Nationwide Mutual Insurance v. DardenSupreme Court of the United States · 1992
- Commissioner v. GroetzingerSupreme Court of the United States · 1987
- Arizona Governing Committee for Tax Deferred Annuity & Deferred Compensation Plans v. NorrisSupreme Court of the United States · 1983
- Simpson v. CommissionerUnited States Tax Court · 1975
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