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MEMORANDUM FINDINGS OF FACT AND OPINION
CHABOT, Judge: Respondent determined deficiencies in
Federal individual income tax1 against petitioners as follows:
Year Deficiency
1989 $10,286
1990 11,652
After concessions by both sides,2 the issue for decision is
whether petitioner Paul E. Hathaway, hereinafter sometimes
referred to as Hathaway, a traveling sales representative, was a
common law employee, a statutory employee, or an independent
contractor in 1989 and 1990.
1 Of the total deficiencies determined, $9,023 for 1989 and
$9,414 for 1990 are alternative minimum tax under sec. 55; the
remaining amounts are income tax under sec. 1.
Unless indicated otherwise, all section and subtitle
references are to sections and subtitles of the Internal Revenue
Code of 1986, as in effect for the years in issue.
2 The parties reached the following agreements. For 1989, if
respondent's determination is sustained, then (1) petitioners may
claim a Schedule C expense deduction in the amount of $15,551
(see sec. 62(a)(2)), (2) petitioners may claim on Schedule C cost
of goods sold in the amount of $8,260, (3) petitioners may claim
a net (i.e., after subtracting 2 percent of adjusted gross
income) Schedule A business expense deduction in the amount of
$58,469, and (4) petitioners may claim a Schedule A medical
expense deduction in the amount of $615.23. For 1990, if
respondent's determination is sustained, then (1) petitioners may
claim a Schedule C expense deduction in the amount of $10,270,
(2) petitioners may claim a Schedule A interest expense deduction
in the amount of $109, and (3) petitioners may claim a net
Schedule A business expense deduction in the amount of $68,110.
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