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with all of the State Farm companies for a period of 1 year
entitled petitioner to subsequent termination payments.
The Agreement also conditioned the termination payments upon
certain adjustments to reflect: (1) The amount of income the
State Farm companies received on petitioner's book of business
during the first post-termination year, and (2) the number of his
personally produced policies canceled during that year.
On Forms 1099-Misc sent to petitioner and the Internal
Revenue Service for 1990 and 1991, State Farm reported the
amounts of termination payments as nonemployee compensation
attributable to service rendered by petitioner prior to his
retirement.
In the notice of deficiency respondent determined that the
amounts petitioner received from State Farm as termination
payments constituted income from self-employment within the
meaning of section 1401, and, therefore, were subject to self-
employment tax.
We begin by pointing out that this case is indistinguishable
from Milligan v. Commissioner, 38 F.3d 1094 (9th Cir. 1994),
revg. T.C. Memo. 1992-655. Both cases involve former State Farm
insurance agents who received termination payments under
precisely the same provisions of Section IV of the State Farm
Agent's Agreement. However, our opinion in Golsen v.
Commissioner, 54 T.C. 742 (1970), affd. 445 F.2d 985 (10th Cir.
1971), is not applicable here because an appeal of our decision
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