- 36 -
See Wichita Terminal Elevator Co. v. Commissioner, 6 T.C. 1158,
1165 (1946), affd. 162 F.2d 513 (10th Cir. 1947).
For all these reasons, the record establishes that
petitioner, rather than Universal, was the “true earner” of the
$103,420 paid for petitioner’s services during 1993.
Petitioner’s attempted transfer of his “knowledge, talent,
ability and labor” to Universal was a classic assignment of
income. See Vercio v. Commissioner, 73 T.C. at 1250-1254
(taxpayers created trusts to which they purportedly conveyed the
“exclusive use of * * * [their] lifetime services and all of the
currently earned remuneration therefrom”; held, taxpayers
retained ultimate direction and control over earning of the
income and the conveyance was an invalid assignment of income, in
part because it was unlikely that a binding contract for services
between the trust and the taxpayers had been entered into, there
was no evidence that the trust had any right to direct the
taxpayers’ income-producing activities, and it was questionable
whether the trusts could in any event obligate the taxpayers to
perform services that were inherently personal in nature); see
also Vnuk v. Commissioner, 621 F.2d 1318, 1319 (8th Cir. 1980),
affg. T.C. Memo. 1979-164 (physician conveyed to a trust “the
exclusive use of * * * [his] lifetime services and all the
currently earned remuneration accruing therefrom”; held,
physician retained ultimate direction and control and conveyance
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