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law creates legal interests, but Federal law determines when and
how they are taxed. Burnet v. Harmel, 287 U.S. 103, 110 (1932);
Brown v. United States, 890 F.2d 1329, 1337 n.9 (5th Cir. 1989).
Although the assignment of the right to receive income may be the
transfer of a property right under State law, it may also be an
anticipatory assignment of income under Federal income tax law.
C.M. Thibodaux Co. v. United States, 915 F.2d 992, 996 (5th Cir.
1990).
In order to support his argument, petitioner relies on the
dissent in Helvering v. Eubank, 311 U.S. 122 (1940). The Eubank
majority, however, held that the assignment of renewal contracts
for insurance commissions was an assignment of income rather than
an assignment of property, id. at 125, and that the commissions
were taxable to the assignor. Id. at 124.
We hold that the $113,081 in renewal commissions is taxable
to petitioner.
Substantial Understatement Penalty
Section 6662(a) imposes an accuracy-related penalty of
20 percent on any portion of an underpayment of tax that is
attributable to items set forth in section 6662(b)(2). Section
6662(b) specifies as one of those items "Any substantial
understatement of income tax."
An "understatement" is the amount by which the tax required
to be shown on the return for the taxable year exceeds the tax
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