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During 1989, Shackelford Vocational Rehabilitation
Services (SVRS) wrote checks payable to petitioner
totalling $52,983[5] for consulting services. Petitioner
did not report any of these amounts as income on his 1989
income tax return.
In his reply, Mr. Maynard denied "that he failed to report any of
these amounts as income on his 1989 income tax return." In the
stipulation filed on May 16, 1994, in Mr. Maynard's case, the
parties stipulated the following:
During 1989, Maynard received $52,999.50 from Shackelford
Vocational Services for consulting services. Petitioner
concedes that this amount is income to him.
The Commissioner's allegations and the stipulation in Maynard
v. Commissioner, docket No. 13220-93, clearly set forth the factual
basis upon which the Commissioner relies in that case; i.e., that
the payments to Mr. Maynard were "for consulting services". This
stipulation is inconsistent with respondent's position in the
instant case; i.e., that the payments were not for consulting
services or were in excess of what was warranted by whatever
nominal consulting services Mr. Maynard rendered to petitioner. We
agree with respondent that any portion of these payments in excess
of those made as reasonable compensation for consulting services
would be personal intrafamily transfers. However, such personal
intrafamily transfers would not be taxable income to Mr. Maynard.
5The difference between this amount and the amount at issue
in the instant case is equal to the $16.50 check, which we have
previously mentioned.
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