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This Court has enumerated the following factors8 in
determining whether an employee-employer relationship exists: (1)
The degree of control exercised by the principal over the details
of the work; (2) which party invests in the facilities used in the
work; (3) the opportunity of the individual for profit or loss; (4)
whether the principal has the right to discharge the individual;
(5) whether the work is part of the principal's regular business;
(6) the permanency of the relationship; and (7) the relationship
the parties believe they are creating. Weber v. Commissioner, 103
T.C. 378, 387 (1994), affd. per curiam 60 F.3d 1104 (4th Cir.
1995); Professional & Executive Leasing, Inc. v. Commissioner, 89
T.C. at 232; Simpson v. Commissioner, supra at 984-985; see also
United States v. Silk, 331 U.S. 704, 716 (1947). No single factor
is dispositive. Simpson v. Commissioner, supra at 985. All of the
facts and circumstances must be studied. Professional & Executive
Leasing, Inc. v. Commissioner, supra at 232.
While all of the above factors are important, the "right-to-
control" is the "master test" in determining the nature of a
working relationship. Matthews v. Commissioner, 92 T.C. at 361.
Both the control exercised by the alleged employer and the degree
to which the alleged employer may intervene to impose control must
8 The parties cite Rev. Rul. 87-41, 1987-1 C.B. 296,
which lists 20 factors to consider in determining whether a
common law employer-employee relationship exists. Many of these
factors are incorporated into this Court's seven factors.
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Last modified: May 25, 2011