Vincent E. & Judy Bot - Page 7

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          had any net earnings from self-employment as that term is used in           
          section 1402(a)(1).                                                         
               In light of all the facts and circumstances, we must decide            
          whether Mrs. Bot received rental income from Mr. Bot pursuant to            
          an "arrangement" between the parties to produce agricultural                
          commodities on the farm within the meaning of section                       
               In Mizell v. Commissioner, T.C. Memo. 1995-571, this Court             
          explained that:                                                             
               The word "arrangement" is defined as an agreement.                     
               Webster's Third New International Dictionary 120 (1993).               
               While the concept of an agreement certainly includes a                 
               contractual agreement, it is a broader concept that would              
               also include other forms of agreements not necessarily                 
               arising from strict contractual relationships.  Consistent             
               with its dictionary definition, in most of the instances               
               where it is used in the Internal Revenue Code, the word                
               "arrangement" refers to some general relationship or overall           
               understanding between or among parties in connection with a            
               specific activity or situation.  Generally, it is not                  
               limited only to contractual relationships, or used in a way            
               that suggests that its terms and conditions must be included           
               in a single agreement, contractual or otherwise.  Congress             
               obviously recognized a distinction between a contract and              
               the broader concept of an "arrangement", as is evident from            
               those sections of the Internal Revenue Code that make                  
               reference to both.  * * *                                              
               The parties stipulated that Mr. Bot used the farmland to               
          produce agricultural commodities such as livestock and crops.               
          With respect to whether under the arrangement Mrs. Bot was to               
          materially participate in the farming operations, we look not               
          only to the obligations imposed upon Mrs. Bot by the oral lease,            

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