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employment with Conseco, the amounts of his renewal commission
payments were calculated based upon the old premiums, and the new
agent assigned to this client would receive the benefit for the
increase in the premiums. This appears to be the only
difference, as to the calculation of the amounts of the renewal
commission payments, between the renewal commission payments
received before termination of petitioner’s employment with
Conseco and the renewal commission payments received post-
termination.
As previously stated, petitioner continues to receive
commission compensation from renewal policies with Conseco. The
renewal commission payments are disbursed per the Marketing
Agreement without regard to whether petitioner is still employed
by Conseco. Petitioner received the same renewal commission
payments during his employment with Conseco and paid self-
employment tax on those payments. Also, the renewal commission
payments are based on actual renewals of policies with Conseco
during the year for which the payments are received. The renewal
commission payments received by petitioner during the taxable
years 2000 and 2001 were in no way an annuity or estimated
payments. Since petitioner’s termination in October 2000,
petitioner has not received renewal commission payments from any
policy that was sold after 1997. Petitioner has never received
any renewal commission payments from his final year with Conseco,
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Last modified: May 25, 2011