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no evidence that he was an employee other than to conclude in his
testimony that “I was an employee.” Petitioner also testified
that he was just a laborer and did not have any employees.
Based on the facts in the record, we sustain respondent’s
determination that petitioner was self-employed as an independent
contractor for JWH in 1997. Petitioners are liable for self-
employment tax under section 1401 on the income received from Sal
Parziale and JWH during 1997.
Addition To Tax for Failure To File a Timely Return
Respondent determined an addition to tax under section
6651(a)(1) for petitioners’ failure to file timely a Federal
income tax return for 1997. Petitioners’ tax return was received
by the Commissioner on September 4, 1998. The return preparer’s
signature is dated August 4, 1998. Petitioners’ signatures are
not dated. Petitioner testified that he filed for an extension
of time to file the return. He did not retain a copy of the
request for an extension or produce evidence of the date the
request was made or of the date he mailed the return.
Petitioners have not presented any evidence that the delinquent
filing was due to reasonable cause. Respondent’s determination
that petitioners are liable for the addition to tax under section
6651(a)(1) is sustained.
Accuracy-Related Penalty
Respondent determined that petitioners are liable for the
accuracy-related penalty under section 6662(a) and (d)(1). The
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Last modified: May 25, 2011