Taylor Miller - Page 4




                                        - 4 -                                         

          independent contractor, in various selling jobs in, among other             
          things, the financial products, mortgage brokerage, and real                
          estate businesses.                                                          
               In fall 1976 or January 1977, petitioner applied to become a           
          State Farm trainee agent.  As part of her job application,                  
          petitioner had a series of interviews and took a test with State            
          Farm.  Petitioner was never hired by State Farm, nor did she ever           
          provide services for State Farm.                                            
               In 1988, petitioner applied to become a class member of the            
          State Farm class action lawsuit and thereafter became a class               
          member.  On March 6, 1992, petitioner executed a settlement                 
          agreement and general release (settlement agreement), regarding             
          her claim in the State Farm class action lawsuit.  In the                   
          settlement agreement, petitioner and State Farm characterized the           
          settlement as “the compromise of a claim for agent earnings”; by            
          entering into the settlement agreement, petitioner waived “any              
          and all right she might have * * * respecting instatement”.                 
               Petitioner received a $223,935 check from the law firm of              
          Saperstein, Mayeda, Larkin, and Goldstein as the net proceeds of            
          settlement of her claim in the State Farm class action lawsuit.             
          Petitioner has stipulated that she received $283,543 as the gross           
          proceeds of the settlement (not reduced by attorney’s fees and              
          costs) during the 1992 tax year.  Of that amount, State Farm                
          reported $283,178 on Form 1099-MISC and the remaining $425 on               





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011