2022 Standard Federal Tax Reporter (CCH) Committee Reports on P.L. 105-34 (Taxpayer Relief Act of 1997), Congress (United States)

Summary

• Committee Report: Standard Federal Tax Reporter (2022), Committee Reports on P.L. 105-34 (Taxpayer Relief Act of 1997)

  .023 Clarification of exemption from self-employment tax for certain termination payments received by former insurance salesmen.-The bill codifies case law by providing that net earnings from self employment do not include any amount received during the taxable year from an insurance company on account of services performed by such individual as an insurance salesman for such company if (1) such amount is received after termination of the individual's agreement to perform services for the company, (2) the individual performs no services for the company after such termination and before the close of the taxable year, (3) the amount of the payment depends solely on policies sold by the individual during the last year of the agreement and the extent to which such policies remain in force for some period after such termination, and does not depend on the length of service ...