- 5 -
sole income was his Pension Plan payments and Social Security
benefits. He did not receive this income as a minister but as a
direct result of his 30 years of employment with the Motion
Picture Industry. Petitioner’s Pension Plan payments and Social
Security benefits were based on past services and are expressly
includable in gross income. See sec. 61(a)(11); sec. 1.61-11(a),
Income Tax Regs. The income he received is not exempt from tax,
and petitioner is required to pay Federal income taxes on it.
Petitioner’s second argument appears to be that he was an
agent of his religious order and his Pension Plan payments and
Social Security benefits were remuneration directly to the
principal, the order, and that, since charitable organizations
are not taxed, his retirement income is not taxable. His
testimony basically concluded that, because the church was not
taxed, and he was acting on behalf of the church by giving his
money to do the “work of the Lord”, then he likewise should not
be taxed. The Court rejects that argument, which has no more
merit than petitioner’s first argument.
Respondent cited Fogarty v. United States, 780 F.2d 1005
(Fed. Cir. 1986). In Fogarty, a Catholic priest contracted to
teach religion classes at a public university. He taught for 2
years, and, during his tenure, the university deposited checks in
a checking account in the name of the church, an account on which
the priest was an authorized signatory. Id. at 1007. Under the
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011