Dennis O. Fultz and Linda G. Fultz - Page 11

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          self-employment tax, and that the self-employment income of a               
          member of MCP includes income that the member derives from the              
          business conducted by MCP as an agent of the member.                        
               It has been stipulated that before the period in dispute               
          petitioners purchased shares of stock in MCP and “units of equity           
          participation”.  Petitioners entered into UMAs with MCP in which            
          they represented they were producers or owners of the corn they             
          would deliver under the MCP program.  Corn was delivered to MCP             
          to meet petitioners’ obligations to MCP, and they received value-           
          added payments from MCP.  All these factors were present in Bot.            
          Nevertheless, petitioners maintain the present case should be               
          distinguished from Bot because they entered into a lease                    
          agreement with Fultz Farms under which they purportedly assigned            
          to Fultz Farms all their responsibilities and duties as holders             
          of the units and all the value-added payments due from MCP.                 
          Petitioners also assert that although they received the checks              
          representing the value-added payments from MCP, they immediately            
          wrote a check to Fultz Farms for the full amount of each check              
          issued to them by MCP.  Petitioners maintain that once Fultz                
          Farms was incorporated, they no longer had the assets and ability           
          needed to grow the corn required by their equity participation in           
          MCP.  Petitioners represent that Fultz Farms assumed the                    
          obligation to produce the corn for MCP pursuant to the lease, and           
          the payments they personally received from Fultz Farms were akin            






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Last modified: May 25, 2011