- 4 -
Accordingly, we hold that petitioner had gross income in 1994 of
$22,455.
2. Self-employment Tax Section 1401(a) imposes a tax on
self-employment income for old-age, survivors, and disability
insurance. Section 1401(b) imposes an additional tax on self-
employment income for hospital insurance. Self-employment income
is defined as the net earnings from self-employment derived by an
individual during the taxable year. Sec. 1402(b). Net earnings
from self-employment is the gross income derived by an individual
from any trade or business carried on by such individual, less
any deduction attributable thereto. Sec. 1402(a).
Courts look to several factors to decide whether an
employment relationship exists. Among them are the following:
(1) The degree of control exercised by the principal over the
manner in which work is performed; (2) the individual's
investment in the facilities used; (3) the individual's
opportunity for profit or loss; (4) whether or not the principal
has the right to discharge the individual; (5) the permanency of
the relationship; (6) whether the work performed is an integral
part of the principal's regular business; and (7) the
relationship the parties believe they are creating. United
States v. Silk, 331 U.S. 704, 716 (1947); Simpson v.
Commissioner, 64 T.C. 974, 984-985 (1975); sec. 31.3121(d)-
1(c)(2), Employment Tax Regs. These factors are not weighed
equally, but must be evaluated according to their significance in
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011