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renewal commissions on previously-generated policies”. Milligan
v. Commissioner, supra at 1099 (citing Erickson v. Commissioner,
T.C. Memo. 1992-585, affd. without published opinion 1 F.3d 1231
(1st Cir. 1993)). In Erickson v. Commissioner, supra, the Court
found that the payments under the settlement agreement entered
into between the taxpayer and the insurance company represented
renewal commissions and were taxable as self-employment income
under section 1401(a).
Petitioner was an independent agent for American Life until
1998. Upon the termination of his employment, he was fully
vested in his accounts, which entitled him to receive commissions
on the renewal of any policies that he wrote while he was an
active agent. Petitioner did not dispute or challenge whether
the commissions earned, and applied to his outstanding balances,
were commissions on the renewal of policies that he wrote. He
did not contend or establish that he was a statutory employee
pursuant to section 3121(d)(3)(B). See Diers v. Commissioner,
supra at n.6. Accordingly, the Court holds that petitioner
earned renewal commission income and is, therefore, liable for
self-employment tax on that income.
The final issue is whether petitioners are liable for the
accuracy-related penalty for the year 2001 under section 6662(a)
for negligence, disregard of rules or regulations, or a
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