- 9 -
Nationwide Mut. Ins. Co. v. Darden, supra at 323-324; Weber v.
Commissioner, supra at 387; Simpson v. Commissioner, 64 T.C. 974,
984-985 (1975). No one factor is determinative; rather, all the
incidents of the relationship must be assessed and weighed.
Nationwide Mut. Ins. Co. v. Darden, supra at 324; NLRB v. United
Ins. Co., 390 U.S. 254, 258 (1968); Azad v. United States, 388
F.2d 74, 76 (8th Cir. 1968); Weber v. Commissioner, supra at 387;
Simpson v. Commissioner, supra at 985.
The record does not support petitioners' argument that the
services which Michael and Jody provided to the corporation were
insubstantial. During 1992, Michael was solely responsible for
managing and operating the business. During 1993 and 1994, while
Jody took over some daily responsibilities, Michael continued to
negotiate all of the arrangements and financing, developed the
plans for the custom homes, and reviewed the progress at the
construction sites. Jody performed management functions and
worked for the corporation as the lead carpenter on many of its
projects.
Moreover, Michael and Jody were employees of the corporation
by virtue of having been officers of the corporation (president
and vice president, respectively), and having provided more than
minor services to it. Sec. 31.3121(d)-1(b), Employment Tax Regs.
On this record, we conclude that Michael and Jody rendered
substantial services to the corporation as employees.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011