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framework of sections 1401 and 1402 would serve to encourage tax
avoidance through the use of tax-motivated or other "condition
subsequent" language, thereby interfering with the administrative
enforcement of these provisions; and (3) the presence of a
condition subsequent would have no impact upon the "source of
income" requirement imposed by the section 1402 "derived from
trade or business" standard because it would relate only to the
amount or existence of income and not its source.
Third, respondent argues the appropriate section 1402
"derived from trade or business" test should be based on an
"ordinary sense" or "common parlance" all-inclusive definition of
the term "derived from". Here again, it is contended that
petitioner would not have received the termination payments "but
for" his prior pursuit of his business as a State Farm insurance
agent. Thus, respondent argues, the "causal nexus" between
petitioner's prior business activity and his receipt of a benefit
from such activity is established notwithstanding the conditions
subsequent that could have eliminated or substantially altered
his right to receive any such benefit.
Finally, respondent argues that an overview of the
employment tax provisions indicates that Congress intended to
subject all payments to former workers, whether employees or
independent contractors, to the imposition of employment tax on
deferred compensation in the absence of a specific exception.
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