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F.2d 74, 76 (8th Cir. 1968); Weber v. Commissioner, 103 T.C. at
387.
A. Degree of Control
The principal's right to control the manner in which the
taxpayer's work is performed is ordinarily the single most
important factor in determining whether a common law employment
relationship exists. Azad v. United States, 388 F.2d at 76;
Leavell v. Commissioner, 104 T.C. 140, 149 (1995); Weber v.
Commissioner, 103 T.C. at 387. In order for a principal to
retain the requisite control over the details of a taxpayer's
work, the principal need not stand over the taxpayer and direct
every move made by that person. Weber v. Commissioner, 103 T.C.
at 388; Professional & Executive Leasing, Inc. v. Commissioner,
89 T.C. at 234; Simpson v. Commissioner, 64 T.C. at 985. In
addition, the degree of control necessary to find employee status
varies according to the nature of the services provided. Weber
v. Commissioner, 103 T.C. at 388. Finally, we must consider not
only what actual control is exercised, but also what right of
control exists as a practical matter. Professional & Executive
Leasing, Inc. v. Commissioner, 862 F.2d at 754, 89 T.C. at 233-
234; Weber v. Commissioner, 103 T.C. at 387-388.
In determining whether an individual is under sufficient
direction and control of another to warrant the finding of an
employer-employee relationship, the courts often have referred to
the regulations promulgated under the employment tax provisions.
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