- 7 -
Accordingly, under the foregoing regulation, a full-time
life insurance salesman is an individual who principally sells
life insurance and annuity contracts for one insurer. Whether an
individual taxpayer satisfies this standard “depends upon the
facts of the particular situation.” Sec. 31.3121(d)-1(d)(2),
Employment Tax Regs.
In this case, the facts are not in dispute. At trial,
petitioner named at least six insurance companies from which he
placed insurance for clients, based upon their individual needs.
Additionally, the parties at trial stipulated a statement from
the chief executive officer of Corben addressed to a tax
compliance officer of the IRS regarding petitioner’s status with
Corben. That statement, in pertinent part, stated:
Michael Byer never was a salaried employee, therefore there
are no W2 forms. As for his 1099’s for 2000, 2001, and
2002, he and his CPA should be able to provide those for
you. We never had an employment agreement with Michael. He
was only paid commissions that resulted from life insurance
sales with which he was involved.
Mr. Byer was hired in December 1998, starting in our office
January 1999. We were impressed with his insurance
knowledge and his tax knowledge. I felt this would help our
firm with life insurance sales. Mr. Byer held a valid life
insurance license required by law and necessary for this
position with The Corben Institute. We sell life insurance;
it’s our only source of income.
Michael was a life insurance agent but was required to help
with our marketing campaigns. He assisted us with
developing our materials, such as brochures and
presentations. He used his legal and tax knowledge to get
clients and their financial advisors to meet with our
agency.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011