- 11 - For purposes of petitioner's plan, Mr. Clendenen is covered as an employee of petitioner and thus, only with respect to the compensation received as petitioner's employee. We do not dispute petitioner's argument that Mr. Clendenen was an officer of petitioner and that an officer is an employee. But the fact of the matter is that petitioner adopted an arrangement whereby Mr. Clendenen was not compensated for whatever services he may have rendered as an officer-employee but for his services as an independent contractor. We hold, therefore, that the amounts petitioner paid to Mr. Clendenen as an independent contractor are not includable in compensation. We now determine whether the annual additions on behalf of Mr. Clendenen exceed the section 415(c) limits. With the exception of 1988, for which the parties agree Mr. Clendenen's compensation was $0, the record is not clear as to the exact amounts of compensation paid to Mr. Clendenen.9 We need not make any findings with respect to the exact figures, however, for 9 The amounts deducted by petitioner as officer compensation on its returns for 1986 and 1987 do not match those reported by Mr. Clendenen on his individual returns. While this could be due to the different tax years involved (year ending June 30 versus December 31), respondent, in the revocation letter and in his briefs, uses the lower figures appearing on Mr. Clendenen's returns due to lack of substantiation. Petitioner does not address the difference for 1986, and for 1987, uses the lower figure in its brief. For 1989 through 1991, respondent treats the amounts shown as salaries and wages on petitioner's corporate returns as compensation paid to Paul Clendenen. Petitioner does not argue that these amounts were paid to Mr. Clendenen.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011