T.C. Memo. 1996-389
UNITED STATES TAX COURT
PAUL E. HATHAWAY AND BRENDA J. HATHAWAY, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 19122-93. Filed August 21, 1996.
Petitioner husband (P) was a traveling sales
representative in 1989 and 1990 for a company that
manufactured and distributed men's clothing (T). T did
not control, and did not have the right to control, the
manner or means by which P solicited sales. P had a
substantial investment in facilities and bore
substantially all the expenses of his sales activities.
P also bore the risk of loss from his sales activities.
P and T had a permanent working relationship, although
terminable at the will of either party. P received
employee-type benefits from T.
Held: P was an independent contractor and was not
an employee in 1989 and 1990. Sec. 62(a)(1), I.R.C.
1986.
Walter T. Hart, for petitioners.
Jeffrey A. Schlei, for respondent.
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