- 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. * * *
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