Robert G. Ruckman and Julie Ruckman - Page 14

                                       - 14 -                                         
               As for the second prong of the test, namely, that there must           
          exist between the corporation and the person using the services a           
          contract or similar indicium recognizing the corporation's                  
          controlling position, we believe the substantial weight of the              
          evidence indicates that the service recipients, Bennett Logging             
          and Happy Trucking, did not recognize Ruckman, Inc., as having a            
          controlling position with respect to the dispatch services.                 
          Again, there was no written contract for dispatch services                  
          between Ruckman, Inc., and either Bennett Logging or Happy                  
          Trucking.  Bennett Logging's checks for dispatch services were              
          made out to Mrs. Ruckman personally.  For the 3 years at issue,             
          Bennett Logging issued Forms 1099 to Mrs. Ruckman personally with           
          respect to the payments for dispatch services, while in the same            
          years it issued Forms 1099 to Ruckman, Inc., with respect to                
          payments for hauling services.  Cf. Zadan v. Commissioner, T.C.             
          Memo. 1993-85 (Forms 1099 issued to taxpayer personally support             
          conclusion that taxpayer rather than his corporation was true               
          earner).  At trial, the parties jointly stipulated a written                
          statement of Gordon Bennett, as president of Bennett Logging, in            
          which he asserts that the "administration" of the trucking branch           
          of Bennett Logging, and subsequently of Happy Trucking, which he            
          further describes as consisting of the services that have been              
          characterized herein as dispatch services, "was the                         
          responsibility of Robert Ruckman, Inc." and that "Due to an                 
          error, 1099's were issued to Julie Ruckman."  The statement is              




Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011