- 10 - Id. at 403. Moreover, in cases dealing with the concept of income, it has been assumed that the person to whom the income was attributed could have received it. Id. The underlying assumption always has been that in order to be taxed for income, a taxpayer must have complete dominion over it. Id. (citing Corliss v. Bowers, 281 U.S. 376, 378 (1930)). We understand the Supreme Court’s opinion to forbid allocation of income to a taxpayer when restrictions imposed by law prohibit the taxpayer from receiving such income. See Procter & Gamble Co. v. Commissioner, supra at 336; see also Salyersville Natl. Bank v. United States, 613 F.2d 650 (6th Cir. 1980); Bank of Winnfield & Trust Co. v. United States, 540 F. Supp. 219 (W.D. La. 1982). Thus, if we find that Mississippi law made it illegal for petitioner to receive commissions during the years in issue, we must hold for petitioner. See Procter & Gamble Co. v. Commissioner, supra at 336. Petitioner argues that Miss. Code Ann. secs. 83-17-105 and 83-17-7 (1973) prohibited it from receiving commissions during the years in issue. For those years, Miss. Code Ann. sec. 83-17- 105 states in pertinent part: No insurer or agent doing business in this state shall pay, directly or indirectly, any commission or any other valuable consideration to any person for services as an agent within this state unless such person shall hold a currently valid license and certificate of authority to act as an agent, as required by the laws of such state. Nor shall any person other than a duly licensed agent accept any such commission or other valuable consideration. * * *Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011