Ronald E. Byers - Page 12
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difference between the truck lease payments (that petitioner now
requests be treated as tax payments) and the tax deficiencies.
An individual taxpayer, however, is not entitled to a
section 31 credit toward Federal income and employment taxes for
taxes not actually withheld from the individual’s earnings. See
United States v. Kuntz, 259 F.2d 871, 872 (2d Cir. 1958); Edwards
v. Commissioner, 39 T.C. 78, 83-84 (1962), affd. on this issue
323 F.2d 751 (9th Cir. 1963).
Herein, no Federal income and self-employment taxes were
withheld from petitioner’s earnings, and petitioner has not cited
any authority that would authorize us now to recharacterize truck
lease payments to CCI as Federal income and self-employment taxes
withheld from petitioner’s earnings.
Petitioner’s liability for self-employment taxes for the
years in issue turns on whether petitioner’s relationship with
ECI constituted an independent contractor relationship
(respondent’s position) or an employment relationship
Under section 1401, self-employed taxpayers, including
independent contractors, are liable for a tax on self-employment
income. See Jones v. Commissioner, T.C. Memo. 2007-249; Jackson
v. Commissioner, 108 T.C. 130, 133-134 (1997); Allen v.
Commissioner, T.C. Memo. 2005-118; Turnidge v. Commissioner, T.C.
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Last modified: March 27, 2008