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as he was disabled during his final year with the company and he
was not actively selling or supervising the sale of any policies.
Petitioner did receive some renewal commission payments from
January 1 through October 13, 2000. The parties are unsure of
the exact amount of these renewal commission payments. It is
likely that the payments made in 2000, prior to October 13, 2000,
were approximately equal in amount to two-thirds of the payments
received by petitioner for the entire 2000 tax year.
Conseco issued petitioner a Form 1099-MISC, Miscellaneous
Income, for taxable year 2000 of $17,067. Conseco issued
petitioner a Form 1099-MISC for taxable year 2001 of $16,001.
The Social Security Administration issued petitioner a Form SSA-
1099, Social Security Benefit Statement, for taxable year 2001 of
$1,774.
On their Forms 1040, U.S. Individual Income Tax Return,
petitioners reported as “Other Income”, on line 21, $17,067.08
and $17,775.19 for taxable years 2000 and 2001, respectively.
Petitioners, on their 2000 and 2001 Forms 1040, labeled this
income as “Insurance Renewal Commissions”.2
It is uncontested that petitioners reported the receipt of
renewal commission payments on their Federal income tax returns
2As previously stated in note 1, $1,774 of the $17,775.19
reported as “Other Income” on petitioners’ 2001 Form 1040 was
Social Security benefits received by petitioner during taxable
year 2001.
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Last modified: May 25, 2011