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v. Internal Revenue Service, 607 F.2d 1237 (9th Cir. 1979).
Petitioners argue that because the employees and independent
contractors were paid from accounts in the names of the
partnerships, the partnerships must be deemed to be the
employers. Petitioners are wrong. Their argument fails to take
into account that Machise, through Bucci and Ingemi, determined
who would be paid and how much, provided Machise money for the
payroll accounts, and signed the paychecks drawn on those
accounts. Machise controlled the wage payments. The use of the
partnerships' names on the payroll accounts is a facade that does
not evidence an employment or other service provider relationship
between the partnerships and the worker providers of the actual
services that were needed to carry on the business of Machise.
There were numerous other attempts to insert the name of the
partnership into Machise's business. These attempts did not,
however, impose any genuine responsibilities upon the
partnerships. The appearance of the partnerships' names on some
of the agreements with independent contractor truckers does
not affect our conclusion. A reading of those agreements shows
that the operative provisions generally described the reciprocal
rights and responsibilities of the truck driver and the
"carrier", Machise. To the extent any rights or obligations
devolved upon the partnerships under those agreements, we regard
it as significant that Bucci--and none of the partners--signed as
"partnership agent".
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