Schwerm v. Commissioner
| Decision Date | 13 January 1986 |
| Docket Number | Docket No. 1214-81. |
| Citation | 51 TCM (CCH) 270,1986 TC Memo 16 |
| Parties | Gerald Schwerm and Joyce J. Schwerm v. Commissioner. |
| Court | U.S. Tax Court |
Lawrence A. Trebon, for the petitioners. Ellen T. Friberg, for the respondent.
Memorandum Findings of Fact and Opinion
Respondent determined deficiencies in Federal individual income tax against petitioners for 1976 and 1977 in the amounts of $1,183.34 and $1,734.00, respectively.
After concessions by both sides the issues for decision1 are as follows:
Some of the facts have been stipulated; the stipulations and the stipulated exhibits are incorporated herein by this reference.
When the petition was filed in the instant case, petitioners Gerald Schwerm and Joyce J. Schwerm (hereinafter sometimes referred to as "Joyce"), husband and wife, resided in Milwaukee, Wisconsin.
In June 1955, Joyce was graduated from Milwaukee State Teachers College with a degree of bachelor of arts in Education and Sociology. From September 1974 through June 1976, Joyce was employed as a Discussion Leader in the Milwaukee Area Technical College (hereinafter sometimes referred to as "MATC"), Family Living Education Program (hereinafter sometimes referred to as "the Family Program").
The Family Program is an adult education program which relies on group interaction. It is an outreach program, operating through discussion groups which meet at various locations in the community, including transition centers, community centers, day care centers, social agencies, halfway houses, park buildings, store fronts, hospitals, libraries, churches, prisons, schools, and homes. Trained discussion leaders are provided for groups of ten or more people.
Discussion topics are chosen in response to the needs of a group and according to the needs of the community at a given time. The topics have included parent-child relationships, family relationships, communication problems, self-awareness, assertiveness training, parent effectiveness training, coping with stress, and coping with problems of retirement.
A Discussion Leader serves as a facilitator for a number of discussion groups. A Discussion Leader begins a discussion group session by supplying participants with background information concerning the discussion topic, through the use of resource materials, which may include textbooks, films, filmstrips, slides, overhead projectors, records, newsprints, and handout materials.
In planning for a discussion group, Joyce and other Discussion Leaders either would meet with the Family Program's coordinator to establish the format, or would establish the format independently and then indicate to the coordinator the information and materials which are to be used. If necessary, the Family Program provides the required materials to the Discussion Leader. Joyce selected the materials for use in her discussion groups.
After supplying the background information to the participants, the Discussion Leader uses techniques to help participants feel comfortable with the group and with each other, and helps them to come forth with their concerns and interests. The Discussion Leader is to guide the discussions so that all the participants have the opportunity to participate and learn what they have come to learn. The Discussion Leader is to prevent any one of the participants from controlling the discussion.
Each discussion group lasts for a minimum of 2 hours. Most discussion groups meet on a weekly basis from September through May. Participants in a discussion group neither pay tuition nor receive grades. However, they do register as students at MATC. The subject matter of a discussion group is not offered for credit to any MATC student.
Discussion Leaders are paid on the basis of the number of discussion groups conducted and not on a salary basis. Discussion Leaders are not eligible for tenure, fringe benefits, or any other contract benefits at MATC. Each Discussion Leader conducts between 4 and 10 group sessions a week. Joyce conducted about eight discussion group sessions per week and received as compensation from MATC about $25 per session.
MATC regularly maintains a staff of 20 Discussion Leaders. A Discussion Leader is a parttime employee regardless of the length of employment. There is no minimum educational requirement for a position as a MATC Discussion Leader other than a high school diploma. A Discussion Leader need not have any prior teaching experience. However, a Discussion Leader must be able to establish rapport with a variety of individuals and be creative in the use of resource materials. A Discussion Leader should be able to work in the community (as opposed to working in a structured kind of setting) and it is preferred that a Discussion Leader have a combination of group work and teaching experiences. All staff at MATC, including Discussion Leaders, are required to participate in ongoing in-service programs.
The Department of Educational Psychology (hereinafter sometimes referred to as "the Department") at the University of Wisconsin, Milwaukee (hereinafter sometimes referred to as "the University"), maintains a graduate Counseling and Guidance program (hereinafter sometimes referred to as "the Graduate Program"), for students to pursue a course of study to receive a master of science degree in Educational Psychology. The purpose of the Graduate Program is to prepare graduate students to become school counselors.
From 1974 through May 1977, Douglas J. Mickelson (hereinafter sometimes referred to as "Mickelson"), then an associate professor of the Department, was responsible for administering the Graduate Program. From 1974 through 1976, Mickelson was the counseling area chairman in the Department. His responsibilities included reviewing applications to the Graduate Program, admitting students to the Graduate Program, scheduling the sequencing of the Graduate Program, administering the internship program, and recommending to the Wisconsin Department of Public Instruction (hereinafter sometimes referred to as "the WDPI") at the conclusion of an internship program (described, infra) whether the student successfully completed certification requirements.
In September 1974, Joyce entered the Graduate Program for a master of science degree in Educational Psychology — Counseling and Guidance. She did so because she believed she should improve her skills and background so as to become a better Discussion Leader.
The WDPI, the governing body for Wisconsin's public primary and secondary scools, establishes the requirements for State certification as a school counselor. In order to receive a school counselor-provisional level certification, an individual must obtain a master of science degree in counseling and guidance and either (1) be certified as a school teacher and have taught for 2 years in the area in which the individual is certified as a school teacher or (2) complete a 1 year school counseling internship program (hereinafter sometimes referred to as "the Internship Program").
Joyce is not certified as a school teacher in Wisconsin.
Completion of the requirements for a master of science degree in counseling and guidance is a prerequisite to entering the Internship Program. On August 14, 1976, Joyce received a master of science degree in Educational Psychology.
The Internship Program has been in existence since 1968; it is still called an experimental program. The Internship Program was designed to supplant the 2 year teaching experience requirement for certification as a school counselor. The Internship Program was established to attract qualified school counselor candidates who would not normally enter the field of education and are not interested in being classroom teachers.
The purpose of the Internship Program is to acquaint the intern with the life and work of a school and to provide to the intern the educational and on-the-job experience necessary to become a certified school counselor.
The Internship Program is conducted by the WDPI together with cooperating universities and schools. The WDPI approved the school counselor internship alternative in the counselor education programs of the following five Wisconsin universities (effective with the start of the 1968-1969 school year): (1) the University; (2) University of Wisconsin, Madison; (3) University of Wisconsin, Oshkosh; (4) University of Wisconsin, Platteville; and (5) University of Wisconsin-Stout, Menomonie. Completion of the Internship Program is not a requirement for the master of science degree in Educational Psychology at the University (however, it is a requirement for the degree at the University of Wisconsin, Madison).
The Internship Program is an extension of the Graduate Program, with the intern remaining a student for credit at the University during the internship; the Internship Program is administered by the Department.
As part of the admissions process to the Graduate Program, the applicant is interviewed; one of the areas discussed at the interview is the applicant's future employment plans. If an applicant indicates an interest in becoming a school counselor but does not have the requisite 2 years of teaching experience and the proper undergraduate teaching preparation, then the Graduate Program interviewer indicates that the Internship Program (which comes after the Graduate Program) is a means of accomplishing the applicant's desired goal.
The Department actively solicits schools to participate in the Internship Program. Some of the schools participating in the Internship...
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