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employee whose compensation is subject to FICA and FUTA taxes.
See Spicer Accounting, Inc. v. United States, 918 F.2d 90, 92-93
(9th Cir. 1990); Western Mgmt., Inc. v. United States, 45 Fed.
Cl. 543 (2000); Darrell Harris, Inc. v. United States, 770 F.
Supp. 1492, 1496-1497 (W.D. Okla. 1991); Radtke v. United States,
712 F. Supp. 143, 145 (E.D. Wis. 1989), affd. per curiam 895 F.2d
1196 (7th Cir. 1990).
Issue 3: Whether Petitioner Is Eligible for Section 530 Relief
Notwithstanding our conclusion that Mr. Barron is an
employee, section 530 of the Revenue Act of 1978, Pub. L. 95-600,
92 Stat. 2763, 2885 (section 530), as amended, would relieve
petitioner of employment tax liability for the periods in issue
if the requirements of section 530 are satisfied. Subsection (a)
of that section provides in relevant part as follows:
(a) Termination of certain employment tax liability
* * *.--
(1) In general.–-If–-
(A) for purposes of employment taxes,
the taxpayer did not treat an individual as
an employee for any period * * *, and
(B) in the case of periods after
December 31, 1978, all Federal tax returns
(including information returns) required to
be filed by the taxpayer with respect to such
individual for such period are filed on a
basis consistent with the taxpayer’s
treatment of such individual as not being an
employee,
then for purposes of applying such taxes for such
period with respect to the taxpayer, the individual
shall be deemed not to be an employee unless the
taxpayer had no reasonable basis for not treating such
individual as an employee.
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