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Article Date:
April 2006

Word Count:



Terminated Insurance Salesman Subject to Self-Employment Tax on Renewal Commissions

Gregg Gilbert sold insurance for Conseco. In 1999, Gilbert had an accident that caused him to retire on Social Security disability. Conseco terminated Gilbert’s marketing agreement on October 13, 2000.


In his tax return, Gilbert reported his post-termination renewal commissions as other income, not subject to self-employment taxes. Wrong, ruled the court.1


The court’s rationale goes like this: Gilbert was self-employed when he made the original sales. The original sales produced the renewal commissions; therefore, Gilbert was self-employed with respect to ... Log in to view full article.

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