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(classification issue); (2) whether contributions made by
Allstate to its pension plan and the Sears Savings and Profit
Sharing Fund (the plans) on behalf of Mrs. Lozon were taxable to
her when vested (pension issue); and (3) whether petitioners
should be credited with payroll taxes withheld from their income
by Allstate and payroll taxes paid by Allstate (employer's
matching portion) in calculating petitioners' self-employment tax
liability (self-employment tax issue).3 We held that petitioners
were independent contractors, the contributions to the plans by
Allstate were not taxable, and petitioners could not offset their
self-employment tax liability by Allstate's matching portion of
the employment taxes but could for their portion of employment
tax payments to the extent allowed by section 6521.
Discussion
Section 7430 provides for the award of administrative and
litigation costs to a taxpayer in an administrative or court
proceeding brought against the United States involving the
determination of any tax, interest, or penalty pursuant to the
Internal Revenue Code. An award of administrative or litigation
costs may be made where the taxpayer: (1) Is the prevailing
party; (2) exhausted available administrative remedies, (3) did
not unreasonably protract the administrative or judicial
proceeding, and (4) claimed reasonable administrative and
3 We note that respondent raised the pension and the self-
employment tax issues in the answer.
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