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OPINION143
The provision of section 61 that gross income includes all
income from whatever source derived would encompass fees and
commissions earned as compensation for services. THC and Zion
received payments from Equitable Leasing which were labeled
inconsistently as commissions and/or loans. Kanter asserts THC
and Zion “received certain amounts from Equitable Leasing in the
first six months of 1983 as an accommodation to allow Zion to
make investments in certain offerings Equitable Leasing was
promoting so that those offerings could become fully subscribed
and close.” Petitioners’ Reply Brief at 1245.
Respondent contends all the moneys Equitable Leasing
transferred to THC and Zion were commissions paid to Kanter to
compensate him for recruiting investors for Mallin’s equipment
leasing transactions. Kanter argues the funds in question were
loans. We agree with respondent.
The record shows: (1) Kanter recruited investors for
Equitable Leasing’s transactions, and (2) Mallin/Equitable
Leasing paid commissions for these services to Kanter-related
entities, THC and Zion. Against this evidence, Kanter offered
143 The STJ report recommended holding that respondent is
barred from making any determination concerning the taxable year
1983 on account of the expiration of the period of limitations
governing assessment and collection for that year. As previously
discussed, we determined that Kanter’s income tax returns for the
years at issue were fraudulent, and, therefore, the period of
limitations remains open pursuant to sec. 6501(c)(1).
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