- 3 - 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 thePage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011