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Petitioner must prove respondent wrong. Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933).
Whether an employee-employer relationship exists in a given
situation is a factual question to which common law principles
apply. Nationwide Mut. Ins. Co. v. Darden, 503 U.S. 318, 323
(1992); Weber v. Commissioner, 103 T.C. 378, 386 (1994), affd.
60 F.3d 1104 (4th Cir. 1995). Factors that are relevant in
determining the substance of an employment relationship include:
(1) The degree of control exercised by the principal over the
details of the work; (2) the taxpayer's investment in the
facilities used in his or her work; (3) the taxpayer's
opportunity for profit or loss; (4) the permanency of the
relationship between the parties; (5) the principal's right of
discharge; (6) whether the work performed is an integral part of
the principal's regular business; (7) the relationship the
parties believe they are creating; and (8) the provision of
employee benefits. NLRB v. United Ins. Co., 390 U.S. 254, 258
(1968); United States v. Silk, 331 U.S. 704, 716 (1947);
Professional & Executive Leasing, Inc. v. Commissioner, 862 F.2d
751 (9th Cir. 1988), affg. 89 T.C. 225 (1987); Weber v.
Commissioner, supra at 387; see also sec. 31.3121(d)-(1)(c)(2),
Employment Tax Regs. (setting forth criteria for identifying
employees under the common law rules). No single factor is
dispositive; the Court must assess and weigh all incidents of the
relationship. Nationwide Mut. Ins. Co. v. Darden, supra at 324.
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