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Petitioner performed services for a subcontractor, N & M
Custom Framing (N & M), during 1994 and 1995. Initially, during
a portion of 1994, N & M treated petitioner as an employee and
withheld income and Social Security or Medicare taxes from his
wages. However for the entire year 1995, N & M treated
petitioner as an independent contractor and did not withhold any
Federal income tax or other employment-related taxes from his
wages. For 1995, N & M issued petitioner a Form 1099
Miscellaneous, rather than a Form W-2, reflecting $20,373 of
income.
Petitioner did not file a Federal income tax return for the
year in issue. By notice of deficiency, respondent determined
that petitioner received self-employment income in the amount of
$20,373 and that he was liable for Federal income tax, as well as
self-employment tax. Respondent now concedes that petitioner was
an employee for the year in issue and is not liable for self-
employment tax. Respondent also determined that petitioner was
liable for an addition to tax under section 6651(a)(1) for
failure to timely file a return.
OPINION
A. Liability for Income Tax
Petitioner contends that he is not liable for income tax for
the year in issue because his employer failed to withhold any
income tax from his wages. He asserts that his employer is the
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