- 9 - sound law the rule that a taxpayer need not treat as income moneys which he did not receive under a claim of right, which were not his to keep, and which he was required to transmit to someone else as a mere conduit.” See also Ancira v. Commissioner, 119 T.C. 135, 138 (2002). Money received as a mere agent or conduit is not includable in gross income. Liddy v. Commissioner, 808 F.2d at 314; Diamond v. Commissioner, supra at 541; Heminway v. Commissioner, 44 T.C. 96, 101 (1965). The Court finds credible the testimony of both petitioner and Mr. Fullen that the compensation earned actually belongs to Mr. Fullen. The Court holds the nonemployee compensation is not attributable to petitioner and she is not liable for self- employment tax. In the Joint Motion for Continuance, respondent expressed his intention to issue a notice of deficiency to Mr. Fullen for the nonemployee compensation in issue. Mr. Fullen has already provided respondent with his Social Security number and has claimed full responsibility for the taxes owed on the compensation. Mr. Fullen’s failure to file an individual income tax return for 1998 does not impair respondent’s ability to issue a notice of deficiency to him. The open period of limitations serves as an aid in respondent’s pursuit of Mr. Fullen for thisPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011