- 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 inPage: Previous 1 2 3 4 5 6 7 8 Next
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