T.C. Memo. 2006-68
UNITED STATES TAX COURT
DANIEL C. McMANUS, Petitioner v. COMMISSIONER OF INTERNAL
Docket Nos. 12336-04, 12711-04.
Filed April 10, 2006.
Philip A. Putman, for petitioner.
Monica Gingras, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
HAINES, Judge: Respondent determined deficiencies in
petitioner’s Federal income taxes for 2001 and 2002 (years at
issue) of $39,799 and $21,789, respectively, as well as additions
to tax under section 6651(a)(1) of $9,949 and $5,447, and
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1 Unless otherwise indicated, all section references are to
the Internal Revenue Code, as amended. All Rule references are
to the Tax Court Rules of Practice and Procedure, unless
otherwise indicated. Amounts are rounded to the nearest dollar.
2 Bankers United merged into Life Investors Insurance Co. of
America on Dec. 31, 2001.
additions to tax under section 6654 of $1,590 and $728,
The issues for decision are: (1) Whether petitioner failed
to report income of $113,469 and $68,233 for 2001 and 2002,
respectively; and (2) whether petitioner is liable for additions
to tax under sections 6651(a)(1) and 6654.
FINDINGS OF FACT
Petitioner resided in La Habra, California, when he filed
During the years at issue, petitioner was an insurance
salesperson licensed by the California Department of Insurance.
Petitioner entered into agency agreements with various insurance
companies. Under these agency agreements petitioner worked as an
independent contractor, soliciting applications for long-term
health care insurance.
On April 23, 1999, petitioner entered into an agency
agreement with Bankers United Life Assurance Co. (Bankers United)
designating him a contracting insurance agent.2 Pursuant to the
agreement, petitioner sold long-term convalescent care insurance
coverage for Bankers United. Bankers United assigned petitioner
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3 However, some of the commissions from Bankers United, for
the years at issue, on policies sold by petitioner were made