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alternative minimum taxable income, no deductions shall be
allowed for miscellaneous itemized deductions.
The Internal Revenue Code does not define the term
“employee”. Whether the employer-employee relationship exists is
a factual question. Weber v. Commissioner, 103 T.C. 378, 386
(1994), affd. 60 F.3d 1104 (4th Cir. 1995). Among the relevant
factors in determining the nature of an employment relationship
are the following: (1) The degree of control exercised by the
principal over the details of the work; (2) which party invests
in the facilities used in the work; (3) the taxpayer's
opportunity for profit or loss; (4) the permanency of the
relationship between the parties to the relationship; (5) the
principal's right of discharge; (6) whether the work performed is
an integral part of the principal's business; (7) what
relationship the parties believe they are creating; and (8) the
provision of benefits typical of those provided to employees.
NLRB v. United Ins. Co. of Am., 390 U.S. 254, 258-259 (1968);
Weber v. Commissioner, supra at 387; Professional & Executive
Leasing, Inc. v. Commissioner, 89 T.C. 225, 232 (1987), affd. 862
F.2d 751 (9th Cir. 1988). No single factor is determinative;
rather, all the incidents of the relationship must be weighed and
assessed. NLRB v. United Ins. Co. of Am., supra at 258; Weber v.
Commissioner, supra at 387. The most important factor in
determining whether a common law employment relationship exists,
however, is the right to control the manner in which the
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Last modified: May 25, 2011