Paula M. Kelly - Page 7




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          relationship exists between the parties, including:  (1) The                
          degree of control exercised by the principal; (2) which party               
          invests in work facilities used by the individual; (3) the                  
          opportunity of the individual for profit or loss; (4) whether the           
          principal can discharge the individual; (5) whether the work is             
          part of the principal's regular business; (6) the permanency of             
          the relationship; and (7) the relationship the parties believed             
          they were creating.  See Weber v. Commissioner, 103 T.C. 378, 387           
          (1994), affd. per curiam 60 F.3d 1104 (4th Cir. 1995).  No single           
          factor dictates the outcome.  All the facts and circumstances               
          should be considered.  Id.                                                  
               The right of control is ordinarily the crucial factor in               
          determining whether an employer-employee relationship exists.               
          See Matthews v. Commissioner, 92 T.C. 351, 361 (1989), affd. 907            
          F.2d 1173 (D.C. Cir. 1990).  To retain the requisite control over           
          the details of an individual's work, the principal need not stand           
          over the individual and direct every move made by the individual.           
          See Weber v. Commissioner, supra at 388.                                    
               In this case, petitioner's services were fixed by a deal               
          memo which petitioner signed with each production company which             
          hired her.  The deal memo also fixed petitioner's compensation.             
          Depending on the circumstances, petitioner was variously paid an            
          hourly rate which may or may not have included overtime, a flat             
          rate, or a rate based on union guidelines.  The deal memo also              






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