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Respondent correctly points out that if petitioners are
considered to be independent contractors, then the compensation
paid to them by Allstate could not be considered FICA wages as
defined under section 3121(a). Respondent argues that
petitioners cannot claim credit toward their SECA tax liability
for the "employer's" portion of the FICA taxes paid by Allstate.
Respondent further argues that petitioners may not reduce their
SECA tax liability by the "employee's" portion of the FICA taxes
erroneously paid on their behalf by Allstate unless the statute
of limitations has expired for petitioners' claim for refund of
the improperly paid FICA taxes, citing section 6521.
Petitioners may not claim credit for Allstate's portion of
the FICA taxes. Section 3111 imposes a tax on employers;
petitioners have no right to claim Allstate's potential tax
refund. Section 6521 offers no support for petitioners' claim.
It deals exclusively with SECA tax and "the tax imposed by
section 3101 (relating to tax on employees under the Federal
Insurance Contribution Act)". (Emphasis added.) Cf. sec. 3111.
Petitioners have misread section 6521.
Petitioners may not reduce their self-employment income by
the compensation paid them by Allstate under section 1402(b).
Section 1402(b) only allows such a reduction for "wages".
Section 3121(a) defines "wages" as "all remuneration for
employment". "Employment", for this situation, is defined by
section 3121(b) as "any service, of whatever nature, performed
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