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integral part of taxpayer's trucking business). This factor
supports respondent's determination.
Other Factors
Other factors courts have considered in determining the
status of workers are the relationship the parties believed they
were creating, see Simpson v. Commissioner, 64 T.C. at 984-985,
and whether the taxpayer withheld taxes, worker's compensation,
and unemployment insurance funds, see Professional & Executive
Leasing, Inc. v. Commissioner, 862 F.2d 751, 753 (9th Cir. 1988),
affg. 89 T.C. 225 (1987).
Petitioner treated all of the drivers as independent
contractors; he issued the drivers Forms 1099 instead of Forms
W-2, and he did not withhold or make contributions of employment
taxes. Most of the drivers, on the other hand, believed they
were employees, and reported their earnings from driving
petitioner's trucks as wages. None of the drivers who appeared
as a witness testified that he reported his earnings on Schedule
C, Profit or Loss From Business (Sole Proprietorship).
Thus, it is clear that petitioner and the drivers were not
in agreement about the relationship that they were creating.
This factor does not support a finding that the drivers were
independent contractors.
Moreover, as we must decide this issue to resolve
petitioner's obligation to comply with the employment tax
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