Taylor Miller - Page 38




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          they can provide for highly compensated individuals, such as                
          physicians and lawyers,6 with petitioner’s reminder that the                
          Court has more recently recognized that highly compensated self-            
          employed individuals are entitled to use such plans, including              
          properly structured defined benefit plans, to shelter their                 
          earned income and provide for retirement within the limits                  
          established by Congress.  See Vinson & Elkins v. Commissioner, 99           
          T.C. 9 (1992).  Petitioner couples her reminder with the argument           
          that, as a victim of invidious discrimination that prevented her            
          from achieving an independent contractor relationship in the                
          insurance industry, she should be allowed to treat her                      
          compensatory recovery as self-employment income and thereby                 
          shelter a portion of the recovery by making deductible                      
          contributions to her qualified plan.  Cf. Sager & Cohen, “How the           




               6 See Staff of the Joint Comm. on Taxation, General                    
          Explanation of the Revenue Provisions of the Tax Equity and                 
          Fiscal Responsibility Act of 1982, at 301-308 (J. Comm. Print               
          1982), setting forth the various restrictions in prior statutory            
          law on qualified plans for the self-employed.  See also Bittker &           
          Lokken, Federal Taxation of Income, Estates and Gifts S90-4-S90-5           
          (Cum. Supp. No. 2, 2000) for a brief summary, with citations to             
          relevant authorities, of the Commissioner’s efforts to limit the            
          use by the erstwhile self-employed of professional corporations             
          as vehicles to obtain the tax benefits of qualified pension and             
          profit-sharing plans.                                                       








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