Ben Cox - Page 2

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          is whether petitioner failed to report commissions earned from              
          prior sales of life insurance policies in the amount of $7,266.             
               Some of the facts have been stipulated and are so found.               
          The stipulation of facts and the exhibits received into evidence            
          are incorporated herein.  Petitioner resided in Jasper, Florida,            
          at the time he filed his petition.                                          
               Petitioner has been employed as a mechanic for Occidental              
          Chemical Phosphate Co. for more than 22 years.  In 1988, he was             
          hired by Massachusetts Indemnity and Life Insurance Co. (MILICO)            
          as an independent contractor sales representative to sell life              
          insurance policies.  Petitioner worked for MILICO from 1988 until           
          the end of 1989.                                                            
               Karen Wilson (Ms. Wilson) is vice president of Primerica               
          Life Insurance Co., formerly known as MILICO prior to a corporate           
          name change effective July 1, 1992.  In this capacity, Ms. Wilson           
          executed an affidavit that was received into evidence wherein she           
          detailed the compensation procedure for MILICO's independent                
          contractor sales representatives:                                           
                                         3.                                           
                    Cash payments are made to sales representatives in two            
               forms.  First, upon receipt of an application for insurance,           
               Primerica Life advances a portion of the commissions that              
               are expected to become earned, assuming a policy is issued             
               and remains in force.  The money advanced on each                      
               application is a loan and, as such, is not reported as                 
               income for the sales representative unless and until the               
               commission income actually becomes earned by virtue of the             
               policyholder continuing to pay premiums.                               






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