Download this Paper Open PDF in Browser

Schneer v. Commissioner: Continuing Confusion Over the Assignment of Income Doctrine and Personal Service Income

58 Pages Posted: 13 Apr 2009  

Ronald H. Jensen

Pace University School of Law

Date Written: 1993

Abstract

This article will analyze the proper application of the assignment of income doctrine to personal service income. Part II will trace the historical development of the assignment of income doctrine and will analyze the doctrine's underlying rationale. The importance of distinguishing between gratuitous and nongratuitous assignments of income will be developed in this Part. Part Ill will present a number of hypothetical situations drawn from actual cases and rulings that involve the application of the doctrine to personal service income. This will both show the pervasiveness of the doctrine and lay the basis for further analysis. Part IV will demonstrate that the tests currently used by the Internal Revenue Service and the courts in these situations - the similarity test and the agency test - fail to provide either a rational or workable basis for solving these problems. Instead, they have resulted in a welter of unintelligible and irreconcilable decisions. Finally, Part V will show how reference to the doctrine's underlying purpose, and particularly to the basic distinction between gratuitous and nongratuitous assignments of income, solves many of the puzzles besetting the application of the doctrine.

Suggested Citation

Jensen, Ronald H., Schneer v. Commissioner: Continuing Confusion Over the Assignment of Income Doctrine and Personal Service Income (1993). Florida Tax Review, Vol. 1, 1993. Available at SSRN: https://ssrn.com/abstract=1376407

Ronald H. Jensen (Contact Author)

Pace University School of Law ( email )

78 North Broadway
White Plains, NY 10603
United States
(914) 422-4294 (Phone)

Paper statistics

Downloads
96
Rank
230,776
Abstract Views
879