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During 1999 and 2000, the company paid taxable pension
benefits to petitioner of $29,012.40 and $30,012.40,
respectively. The company issued to petitioner and the Internal
Revenue Service Forms 1099R, Distributions From Pensions,
Annuities, Retirement or Profit-Sharing Plans, Insurance
Contracts, etc.
For each of the years 1999 and 2000, petitioner attached a
Schedule C, Profit or Loss From Business, to his Federal income
tax return. On the 1999 schedule he describes his business or
profession as "LIFE INS SALES". The gross receipts that
petitioner reported on both Schedules C consisted of the pension
benefits paid to him by the company. Petitioner did not sell or
attempt to sell any insurance products during any part of 1999 or
2000.
Petitioner, however, did not remain idle during his
retirement. During the years at issue, petitioner maintained
contact with his former insurance clients, performing various
services such as assisting with changes to beneficiaries,
addresses, and income tax withholdings. Petitioner, however,
received no compensation for the services he performed. In
February of 2000 petitioner had another heart surgery and after a
year he found out that he would no longer be able to perform
services for his former clients.
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Last modified: May 25, 2011