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taxpayer is precluded from obtaining section 530 relief with
respect to that particular service provider in any subsequent
taxable period.
In order to satisfy the substantive consistency requirement
of section 530, petitioner would have to establish that it did
not treat Mr. Barron, or any service provider whose position was
substantially similar to Mr. Barron’s, as an employee for any
period after December 31, 1977. In the present case, Mr. Barron
is the only C.P.A. who provided services for petitioner and the
only individual who provided professional services for
petitioner. Accordingly, in order to satisfy the substantive
consistency requirement of section 530, petitioner would have to
establish that it never treated Mr. Barron as an employee.
However, Mr. Barron was treated as an employee in 1994 when: (1)
Petitioner issued Mr. Barron a Form W-2 for the taxable year
1994; (2) petitioner included Mr. Barron’s compensation on its
Form 941 for the fourth quarter of 1994 and computed its
liability for FICA tax accordingly; and (3) petitioner included
Mr. Barron’s compensation on its Form 940 for 1994 and computed
its liability for FUTA tax accordingly.
Because petitioner does not satisfy the substantive
consistency requirement, petitioner is not eligible for relief
under section 530.
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