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the 460 acres of farmland equally as joint tenants. McNamara
Farms paid petitioners rent in the amounts of $45,620, $56,168,
and $57,000 in 1993, 1994, and 1995, respectively.
McNamara Farms used the land rented from petitioners in its
farming operation to produce agricultural commodities such as
corn, soybeans, seed corn, sweet corn, and sugar beets.
On February 1, 1992, Mr. McNamara entered into a purported
Employment Agreement with McNamara Farms, signed by Mr. McNamara
as President. The Employment Agreement provided that Mr.
McNamara was to be the general manager of the business, that he
was to do field work, that he was to do marketing, that he had
the responsibility for security of machinery and inventory, that
he was to manage other employees, and that he was to do such
other usual and customary duties required by the agricultural
production operation of McNamara Farms. In essence, the
Agreement memorialized almost the same duties Mr. McNamara had
done since he began farming. The Employment Agreement further
provided that any portion of compensation not paid in kind (e.g.,
grain crops) "will be subject to required FICA social security
tax and income tax withholding." The Employment Agreement
provided that Mr. McNamara could participate in the McNamara
Farms medical reimbursement plan and that he would be provided
with medical insurance for himself and his dependents.
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Last modified: May 25, 2011