- 16 -
payments received during petitioner’s employment with Conseco.
Lencke v. Commissioner, supra.
In the present case, the payments received by petitioner
after the termination of his employment as an independent
insurance agent with Conseco were renewal commission payments.
The legislative history of section 1402(k), the case history,
previously discussed, and the facts of the present case show that
the renewal commission payments are “tied to the quantity [and]
quality of the taxpayer’s prior labor” and that these commission
payments derive from the “carrying on” of petitioner’s business
as an independent insurance agent with Conseco. Therefore, the
renewal commission payments in the present case are not exempted
from self-employment tax pursuant to section 1402(k). See Lencke
v. Commissioner, supra; Erickson v. Commissioner, supra.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
under Rule 155.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Last modified: May 25, 2011