- 16 -
period of limitations for assessment of unemployment tax
reportable on Form 940; i.e., FUTA tax, for the calendar year
1996, expired on January 31, 2000.
On May 24, 1999, well before the earlier of January 31,
2000, and April 15, 2000, prior to the expiration of the
foregoing periods of limitations, respondent sent to petitioner
the Notice of Determination of Worker Classification Under
Section 7436. Thereafter, on August 24, 1999, petitioner filed
its petition under section 7436 commencing the present action
for redetermination of employment status.
The issuance of the notice of determination served to
suspend the running of the period of limitations. Likewise, the
commencement of the action for redetermination serves to further
suspend the running of such period. Accordingly, and contrary to
petitioner’s protestations to the contrary, it is clear that the
statute of limitations does not bar assessment of employment
taxes for periods ending in 1996.
Issue 2: Whether Mr. Barron Is An Employee
Chapter 21 of subtitle C of the Internal Revenue Code
imposes the FICA tax, and chapter 23 of subtitle C of the
Internal Revenue Code imposes the FUTA tax. For purposes of
chapter 21, section 3121(d)(1) specifically includes within the
definition of the term “employee” any officer of a corporation.
For purposes of chapter 23, and as relevant herein, section
Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 NextLast modified: May 25, 2011