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The regulations promulgated under section 3121(d) provide that an
employer-employee relationship exists--
when the person for whom services are performed has
the right to control and direct the individual who
performs the services, not only as to the result to
be accomplished by the work but also as to the details
and means by which that result is accomplished. That
is, an employee is subject to the will and control of
the employer not only as to what shall be done but how
it shall be done. * * * [Sec. 31.3121(d)-1(c)(2),
Employment Tax Regs.]
Petitioner argues that he performed services only in the
capacity of an employee during the years in issue and therefore
is not liable for any self-employment tax. The $7,900 determined
by respondent to be self-employment income in 1987 was
remuneration for petitioner's services paid by American Aerospace
Industries, Inc. (Aerospace). Petitioner testified that his
services for Aerospace were related to telephone marketing and
consisted in reviewing past promotional materials and suggesting
changes, editing telephone solicitation scripts and followup
brochures, supervising telephone staff to insure that
solicitations were being made correctly, and drafting press
releases. Petitioner further emphasized that all of his work had
to be performed on Aerospace's premises, that he was required to
work specific hours, including a designated lunch hour, that he
could not delegate any of his responsibilities or choose
personnel, and that he had no discretion as to goals or
timetables. The foregoing testimony was uncorroborated.
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