- 3 -
in and around Reno, Nevada, for his process services.
Petitioner considered himself an independent contractor for
tax purposes. He reported his process-serving income and claimed
his expenses on his Federal income tax returns on a Schedule C,
Profit or Loss From Business. Petitioner realized a net profit
for each of the years at issue.
Petitioner's earnings from his activity were paid to him by
the Messenger Service. For each year at issue, the Messenger
Service issued to petitioner Internal Revenue Service (IRS) Forms
W-2, Wage and Tax Statement, reflecting the amounts paid to
petitioner for his services. The Forms W-2 classified
petitioner's remunerations as wages. The Messenger Service
withheld Social Security and Federal income taxes on the
payments. Petitioner, however, on his Federal income tax
returns, reported the Form W-2 amounts as gross income on
Schedule C. Petitioner claimed deductions for expenses related
to his activity, consisting of car and truck expenses, meals and
entertainment, and utilities. Although he realized a net profit
for each of the years at issue, petitioner did not include with
his returns the appropriate schedules for self-employment taxes.
In the notice of deficiency, respondent determined that
petitioner was not an independent contractor but, rather, was an
employee and that his earnings from the Messenger Service
constituted salary or wages. Respondent further determined that
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011