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Addition to Tax Accuracy-Related Penalty
Year Deficiency Sec. 6651(a)(1) Sec. 6662(a)
1990 $7,664 $654 $1,533
1992 10,807 --- 2,161
1993 10,069 --- 2,014
Unless otherwise noted, all section references are to the
Internal Revenue Code in effect for the years in issue, and all
Rule references are to the Tax Court Rules of Practice and
Procedure.
The deficiencies and the accuracy-related penalties result
from respondent’s determination that Wesley Wickum (petitioner)
was a common-law employee rather than an employee as defined in
section 3121(d)(3)(B),1 as petitioners claimed in their returns.
Respondent recomputed petitioners’ income taxes by subjecting
petitioner’s business expense deductions to the 2-percent floor
under section 67 and by recomputing petitioners’ alternative
minimum tax pursuant to sections 55(a) and 56(b)(1)(A)(i).
After concessions, we must decide the following issues:
(1) Whether petitioner was a statutory employee. We hold
that he was not.
(2) Whether petitioner was an employee or an independent
contractor under the common-law standards. We hold that he was
an independent contractor.2
1 We will refer to a person who qualifies under sec.
3121(d)(3)(B) as a “statutory employee”.
2 Respondent also argues that if we find that petitioner was
(continued...)
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Last modified: May 25, 2011