Geoff Eyler & Audrey Eyler - Page 10




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          makes of premiums for an accident or health insurance policy                
          covering an employee.  Sec. 1.106-1, Income Tax Regs.                       
               The record establishes that Mr. Eyler paid $5,066 of premi-            
          ums for Mr. Eyler’s Wellmark health policy.  However, petitioners           
          have failed to produce evidence, let alone credible evidence, see           
          sec. 7491(a)(1), such as business records or canceled checks                
          drawn on a business checking account of Mr. Eyler, that estab-              
          lishes (1) that Mr. Eyler paid those premiums in his capacity as            
          Ms. Eyler’s employer pursuant to the unwritten health plan and              
          (2) that he did not pay those premiums in his individual capacity           
          as the applicant for, and the primary insured under, Mr. Eyler’s            
          Wellmark health policy.13                                                   
               On the record before us, we find that petitioners have                 
          failed to carry their burden of establishing that Mr. Eyler, as             
          Ms. Eyler’s employer, paid, directly or indirectly, to Ms. Eyler            
          pursuant to the unwritten health plan the claimed $5,066 of                 
          health insurance premiums in order to reimburse her for expenses            
          incurred or paid for the medical care of her spouse and                     




               13The parties stipulated that “Audrey Eyler’s salary plus              
          benefits is reasonable compensation for the work she performed.”            
          However, the parties have not stipulated, and the record does not           
          otherwise establish, the “benefits” to which the parties are                
          referring.  We have found that petitioners have failed to carry             
          their burden of showing that Mr. Eyler paid the premiums for Mr.            
          Eyler’s Wellmark health policy in his capacity as Ms. Eyler’s               
          employer pursuant to the unwritten health plan.                             





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