Article Date:
September 2006

Word Count:



Assignment of Personal Commissions to His Corporation Crushes Insurance Agent

This 2006 Tax Court case shows what happens when you make an assignment of income. If you want your commissions taxed to another business entity, that business entity must earn the commissions.


Here’s what happened in this 2006 case, which involved 2001 and 2002.


Daniel C. McManus, a licensed insurance agent, had agency agreements with various insurance companies. Under these agreements, McManus worked as an independent contractor, soliciting applications for long-term health care insurance.


On April 23, 1999, McManus entered ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee