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Federal income tax in the amount of $4,640 and an accuracy-
related penalty under section 6662(a) in the amount of $928.
After concessions by respondent, the issues for decision
are: (1) Whether petitioner derived income as an employee or as
an independent contractor during 1991; (2) whether petitioner is
entitled to deduct certain business expenses in excess of the
amounts allowed by respondent; and (3) whether petitioner is
liable for the section 6662 accuracy-related penalty.
Background
Some of the facts have been stipulated, and they are so
found. The stipulation of facts and the attached exhibits are
incorporated herein by this reference. At the time he filed his
petition, petitioner resided in Los Angeles, California.
Petitioner is a professional musician. During 1991,
petitioner provided services to rock star Rod Stewart (Stewart).
He played various instruments for Stewart’s band, including
guitar, violin, and mandolin. Petitioner was not a permanent
member of the band and was not retained through written contract.
Rather, he was called upon by Stewart to perform on an as-needed
basis through oral agreement.
During most of 1991, petitioner was on tour with Stewart and
other members of the band. He traveled from city to city,
staying in hotels and living out of suitcases for long stretches
of time. He traveled with the band for 13 months to cities in
the United States, Europe, Asia, and Australia.
Petitioner’s work schedule was set by Stewart and was
primarily based on practice, concert, and travel schedules.
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