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Section 61(a)(1) provides that gross income includes “all
income from whatever source derived, including (but not limited
to) * * * compensation for services, including fees, commissions,
fringe benefits, and similar items”, unless otherwise provided.
The Supreme Court has consistently given this definition of gross
income a liberal construction “in recognition of the intention of
Congress to tax all gains except those specifically exempted”.
Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 430 (1955); see
also Roemer v. Commissioner, 716 F.2d 693, 696 (9th Cir. 1983),
revg. 79 T.C. 398 (1982) (“[all] realized accessions to wealth
are presumed to be taxable income, unless the taxpayer can
demonstrate that an acquisition is specifically exempted from
taxation”). Moreover, section 1.61-2(a)(1), Income Tax Regs.,
provides that “wages, salaries, commissions paid salesmen, * * *,
commissions on insurance premiums, * * * are income to the
recipients unless excluded by law”.
“In the situation where the advances are actually loans,
when the repayments are offset directly by the future earned
commissions, then the agent will have either commission income or
cancellation of indebtedness income at the time of the offsets.”
Diers v. Commissioner, T.C. Memo. 2003-229; Cox v. Commissioner,
T.C. Memo. 1996-241; cf. Warden v. Commissioner, T.C. Memo. 1988-
165. Although petitioner’s employment with American Life
terminated in 1998, he continued to thereafter earn renewal
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