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Petitioner filed an amended return for 1991 reflecting two
adjustments. First, petitioner changed his worker classification
from employee to independent contractor. Second, petitioner
claimed an additional $7,757 deduction for agent’s commission
expense. Respondent has not accepted either of these
adjustments.
Petitioner had both his original and amended returns
prepared by tax professionals. Petitioner gave the tax
professionals the same documentation that he presented to the
Court. Moreover, petitioner discussed with them all deductions
claimed on the returns.
Discussion
Worker Classification
The first issue for our consideration is whether petitioner
derived income as an employee or as an independent contractor
during 1991. Respondent argues that petitioner derived all his
income for 1991 as an employee, while petitioner asserts that he
was an independent contractor.
Respondent's determination is presumed correct, and
petitioner bears the burden of proving he is not an employee.
Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
Whether an individual is an employee or an independent contractor
is determined by examining relevant facts and circumstances and
applying common law principles. Nationwide Mut. Ins. Co. v.
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Last modified: May 25, 2011