Donald Victor Teschner - Page 8

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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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