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times, the respective buildings in which petitioners conducted
the two businesses consisted of at least two floors, and above
Barbara’s Gift Shop were an apartment and offices.14 At all
relevant times, one or two buildings were located on Main Street
between the respective business locations of Barbara’s Gift Shop
and Barmes Wholesale.
On October 12, 1995, Mr. Barmes advised the respective
employees15 of Barbara’s Gift Shop and Barmes Wholesale (collec-
tively, business employees) (1) that the two businesses had
become part of a trust and (2) that, after October 12, 1995, the
business employees would no longer be employees of petitioners
but would be independent contractors for Sandbar Wholesale Trust.
In a written notice to the business employees dated November
2, 1995, Mr. Barmes informed such employees that, as of November
1, 1995, Barbara’s Gift Shop and Barmes Wholesale would no longer
carry Workman’s Compensation Insurance.
On October 20, 1995, Mr. Barmes issued a written statement
(October 20, 1995 written statement) to the business employees,
14The record does not disclose whether the apartment and the
offices located above Barbara’s Gift Shop were separate and
whether those offices served as offices for Barbara’s Gift Shop
only or for both Barbara’s Gift Shop and Barmes Wholesale.
15When referring in this Opinion to the individuals who
worked at the two businesses, our use of the words “employees”,
“independent contractors”, “employer”, and similar terms is for
convenience only and is not intended to convey any meaning or
have any significance for Federal tax purposes.
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