Peterson v. Commissioner, No. 14-15773 (11th Cir. 2016)Annotate this Case
Christine C. Peterson and Roger V. Peterson challenged the tax court's determination that deferred compensation payments under corporate plans made after Christine's retirement from Mary Kay, Inc. in tax year 2009 were derived from her former Mary Kay association, making them subject to self-employment tax. The court held that the percentage commissions received by Christine, a retired National Sales Director, under the Family Program and Futures Program are subject to self-employment tax, because they are classified specifically as deferred compensation, derived from her prior association with Mary Kay. Because the Petersons did not pay the self-employment tax Christine owed for her 2009 commission payments from two post-retirement, deferred-compensation programs, the Family Program and Futures Program, “the tax court did not err in upholding the additional tax imposed by the IRS,” including interest and penalties. Therefore, the appeal from the decision of the tax court upholding Christine’s self-employment tax for 2009, Appeal No. 14-15774, is affirmed. The consolidated appeal from the decision of the Tax Court relating to tax years 2006 and 2007, Appeal No. 14-15773, is dismissed as improperly filed.