William H. Mansel, Jr. and Angela W. Mansel - Page 9

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               Petitioner contends that he continuously experienced                   
          difficulties in getting paid for his services for Victory Motors.           
          He argued that the Form 1099-MISC was “bogus”.  These and other             
          factors undoubtedly prompted petitioner to terminate his                    
          relationship with that dealer.  The Court is satisfied from                 
          petitioner’s testimony that, when he left Victory Motors, he                
          considered the $13,500 in payments as final, and that no other              
          payments would be forthcoming.  It is only reasonable to conclude           
          that, at the close of 2001, petitioner would receive no                     
          additional payments from Victory Motors, and no attempts, legal             
          or otherwise, were pursued by him to resume his employment with             
          that dealer or to collect what he considered to be owing to him.            
          For all practical purposes, petitioner did not consider the                 
          relationship with Victory Motors as continuing, nor did he have             
          any reasonable expectation that further payments would be                   
          forthcoming.  Moreover, petitioner knew these payments                      
          constituted income and also knew that no income taxes had been              
          withheld on these payments.  Therefore, imposition of the section           
          6662(a) penalty in this case is justified, and, therefore,                  
          respondent is sustained.                                                    
               Reviewed and adopted as the report of the Small Tax Case               

                                                  Decision will be entered            

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