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from the arrangement.
Rents that are consistent with market rates very
strongly suggest that the rental arrangement stands on
its own as an independent transaction and cannot be
said to be part of an “arrangement” for participation
in agricultural production. Although the Commissioner
is correct that, unlike other provisions in the Code,
� 1402(a)(1) contains no explicit safe-harbor provision
for fair market value transactions, we conclude that
this is the practical effect of the “derived under”
language.
McNamara v. Commissioner, 236 F.3d at 412-413.
The Court of Appeals for the Eighth Circuit remanded Bot I,
Hennen I, and McNamara I in order to provide the Commissioner of
Internal Revenue the opportunity to show that a connection
existed between the respective rents and the respective employ-
ment agreements or arrangements involved in those cases. Id. On
remand, the respective parties in Bot I, Hennen I, and McNamara I
declined our invitation to conduct additional trials. As a
result, we found that the rent at issue in each of those cases
was at or below market rates and decided that no deficiency in
self-employment tax existed in any of those cases.
In Golsen v. Commissioner, 54 T.C. 742, 757 (1970), affd.
445 F.2d 985 (10th Cir. 1971), we concluded that we would follow
a Court of Appeals opinion which is squarely in point where
appeal from our decision would lie to that Court of Appeals and
to that court alone. In the instant case, during the years at
issue petitioners had two arrangements with G.E. Johnson, Inc.:
(1) An oral employment arrangement under which petitioners were
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