Wesley C. and Rhonda A. Wickum - Page 12

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          Petitioner was not an officer of a corporation; moreover, as                
          discussed later in this opinion, we find that petitioner was not            
          an employee under the usual common-law rules.  Thus, we must                
          consider whether he was a full-time life insurance salesman.                
               Respondent argues that petitioner was not a full-time life             
          insurance salesman because he did not sell life insurance,                  
          whereas petitioners contend that petitioner did sell life                   
          insurance because the policies he sold paid benefits in the event           
          of the death of the insured.                                                
               The regulations provide as follows:                                    
               An individual whose entire or principal business                       
               activity is devoted to the solicitation of life                        
               insurance or annuity contracts, or both, primarily for                 
               one life insurance company is a full-time life                         
               insurance salesman.  * * *  An individual who is                       
               engaged in the general insurance business under a                      
               contract or contracts of service which do not                          
               contemplate that the individual’s principal business                   
               activity will be the solicitation of life insurance or                 
               annuity contracts, or both, for one company, or any                    
               individual who devotes only part time to the                           
               solicitation of life insurance contracts, including                    
               annuity contracts, and is principally engaged in other                 
               endeavors, is not a full-time life insurance salesman.                 
               [Sec. 31.3121(d)-1(d)(3)(ii), Employment Tax Regs.3]                   

               Neither section 3121(d)(3)(B) nor the regulation just quoted           
          defines “life insurance” or “life insurance contract”.  However,            
          section 7702(a) provides that for purposes of the Internal                  


               3 This regulation mirrors the legislative history of sec.              
          3121(d), which contains almost identical language.  See S. Rept.            
          1669, 81st Cong., 2d Sess. (1950), 1950-2 C.B. 302, 347.                    




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