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employees of the company for purposes of Federal employment
taxes3 under Subtitle C (Employment Taxes and Collection of
Income Tax) of the Internal Revenue Code. The notice of
determination further provided that petitioner was not entitled
to “safe harbor” relief provided by section 530 of the Revenue
Act of 1978, Pub. L. 95-600, 92 Stat. 2763, 2885. Respondent
attached to the notice of determination a “Preliminary
Calculation of tax and additions to tax”, which set forth the
following amounts: (1) $20,154 for January 1 to December 31,
1992, under the Federal Insurance Contributions Act (FICA), ch.
736, secs. 3101-3128, 68A Stat. 415 (1954), and under the income
tax withholding provisions of sections 3401-3406; (2) $13,060 for
January 1 to December 31, 1992, under the Federal Unemployment
Tax Act (FUTA), ch. 736, secs. 3301-3311, 68A Stat. 439 (1954);
(3) $1,743 in section 6656 penalties for failure to make timely
deposits of taxes; and (4) $24,911 in section 6663 fraud
penalties.
On September 8, 1998, petitioner filed with the Court a
petition seeking our review of the notice of determination.4 In
3 For convenience, we use the term “employment taxes” to
refer to taxes under the Federal Insurance Contributions Act
(FICA), ch. 736, secs. 3101-3128, 68A Stat. 415 (1954), the
Federal Unemployment Tax Act (FUTA), ch. 736, secs. 3301-3311,
68A Stat. 439 (1954), and income tax withholding, secs. 3401-
3406.
4 The petition was actually filed by petitioner and
petitioner’s wife, Anne Neely. On May 14, 1999, respondent filed
(continued...)
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