Henry Randolph Consulting - Page 6





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               Next, we consider whether our interpretation of section 7436            
          is altered by (1) its legislative history, (2) a comparison of               
          section 7436 to provisions authorizing us to issue declaratory               
          judgments (sections 7428, 7476, 7477, 7478, and 7479), (3) the               
          fact that respondent attached a proposed consent to assess                   
          employment tax due to the notice, or (4) petitioner's contention             
          that it would be illogical to provide jurisdiction over worker               
          classification issues without providing jurisdiction to decide               
          the amounts of employment tax and income tax withholding                     
          liability, e.g., from the standpoint of convenience of the                   
          parties or judicial economy.                                                 
          A.   Section 7436                                                            
               1.   Section 7436(a)                                                    
               We may only exercise jurisdiction that is expressly                     
          permitted or provided by statute.  Trost v. Commissioner, 95 T.C.            
          560, 565 (1990); Judge v. Commissioner, 88 T.C. 1175, 1180-1181              
          (1987).  Section 7436(a)4 expressly grants jurisdiction to this              

               4 Sec. 7436(a) provides:                                                
               SEC. 7436.  PROCEEDINGS FOR DETERMINATION OF EMPLOYMENT                 
                         STATUS                                                        
                    (a) Creation of Remedy.--If, in connection with an                 
               audit of any person, there is an actual controversy                     
               involving a determination by the Secretary as part of                   
               an examination that--                                                   
                         (1) one or more individuals performing                        
                    services for such person are employees of                          
                    such person for purposes of subtitle C, or                         
                         (2) such person is not entitled to the                        
                                                               (continued...)          


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