Hilario M. and Cathy C. Aguirre - Page 4

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          Pursuant to the agreement, from February 2 through May 19, 1998,            
          petitioner received payments totaling $7,050 (the payments).                
          The payments were reported on a Form W-2, Wage and Tax Statement,           
          issued to petitioner by the General American Life Insurance                 
          Company, the third-party administrator for Anheuser’s self-                 
          insured, group indemnity plan.  Petitioner did not contribute to            
          the cost of this plan, and contributions made to this plan on his           
          behalf were not included in his income for any period.                      
               Petitioners did not include the payments in the income                 
          reported on their 1998 return.  In the notice of deficiency,                
          respondent determined that the payments must be included in                 
          petitioners’ 1998 income.  Other adjustments made in the notice             
          of deficiency are not in dispute.                                           
               According to respondent, the payments constitute income.               
          Section 61(a) defines gross income as “all income from                      
          whatever source derived”.  Income is defined as “undeniable                 
          accessions to wealth” clearly realized by a taxpayer over which             
          the taxpayer has “complete dominion”.  Commissioner v. Glenshaw             
          Glass Co., 348 U.S. 426, 431 (1955).  Whether a taxpayer enjoys             
          “complete dominion” over an “accession to wealth” depends upon              
          “whether the taxpayer has some guarantee that * * * [the                    
          taxpayer] will be allowed to keep the money”.  Commissioner v.              
          Indianapolis Power & Light Co., 493 U.S. 203, 210 (1990).                   

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