- NEXTRECORD -
Professional & Executive Leasing, Inc. v. Commissioner, 89 T.C.
at 231. Under section 31.3401(c)-1(b), Employment Tax Regs., an
employer-employee relationship--
Generally * * * exists when the person for whom
services are performed has the right to control and
direct the individual who performs the services, not
only as to the result to be accomplished by the work
but also as to the details and means by which that
result is accomplished. That is, an employee is
subject to the will and control of the employer not
only as to what shall be done but how it shall be done.
* * * In general, if an individual is subject to the
control or direction of another merely as to the result
to be accomplished by the work and not as to the means
and methods for accomplishing the result, he is not an
employee.
As a preliminary matter we note that the parties dispute the
identity of the principal in applying the control test.
Petitioners contend that in analyzing whether petitioner is an
employee, only the control exercised by the DFM should be
considered. Respondent contends that the DFM is a division of
the National Church and that the collective right to control
maintained by the DFM and the National Church must be considered.
We agree with respondent on this point. The National Church
prosecutes its activities, in part, through general offices such
as the DFM. The DFM is merely an extension of the National
Church charged with the specific task of coordinating Assemblies
of God missionary efforts outside the United States. As an
agency of the National Church, the DFM performs this task on
behalf of the National Church. Thus, we think that the control
exercised by both the National Church and the DFM should be
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