Marvin L. Barmes and Barbara J. Barmes - Page 19

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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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