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petitioner testified that he believed he was an independent
contractor, his actions suggested otherwise. Petitioner’s
original return, on which he claimed unreimbursed miscellaneous
employee business expenses as a Schedule A adjustment, reflected
the conclusion that he was an employee. Only after respondent’s
determination of the deficiency, including the application of the
alternative minimum tax due to large itemized deductions, did
petitioner and his new tax return preparer conclude that he
should have reported his income and expenses on a Schedule C.
We acknowledge that some factors support a finding of an
independent contractor relationship. For example, petitioner was
required to provide his own tools and supplies, was not
restricted in working for others, and was not a permanent member
of the band. On the other hand, it appears from the evidence
presented that Stewart paid for petitioner’s transportation and
hotel bills while on tour.4 On balance, we are persuaded by
those factors that support our position.
B. Other Income
We also find that petitioner received income from other
activity as an employee. Petitioner failed to present any
persuasive evidence to support a contrary finding and has
4 The hotel bills received in evidence reflect substantial
charges for bar, movies, and room service, but no charges for
room rent. Moreover, there are no documents in evidence that
suggest that petitioner paid for his own transportation while
traveling with the band.
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