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only 10 beauticians2 worked for any substantial period. All of
the individuals listed in the notice of determination worked for
Maxi’s as beauticians for some period during 1994 and/or 1995.
During the first quarter of 1994, petitioner treated the
beauticians working for him as employees; i.e., petitioner
withheld Federal income taxes of $1,083.82. Of these amounts,
petitioner deposited $400.78 with the Government. Petitioner did
not file Form 940, Employer’s Annual Federal Unemployment (FUTA)
Tax Return, or Form 941, Employer’s Quarterly Federal Tax Return,
for any period during the years at issue. For the remaining 1994
tax year and for the entire 1995 tax year, petitioner did not
withhold any Federal income taxes, including employment taxes3
from amounts paid to the beauticians. The former owner of the
hair salon had treated beauticians working for the salon as
employees for Federal tax purposes.
Petitioner’s accountant, Fred C. Brents (Mr. Brents),
prepared Forms W-2, Wage and Tax Statement, for beauticians
2 These beauticians are identified in the notice of
determination. Although the identity of beauticians named in the
notice of determination, petitioner’s payroll records, and the
Forms W-2, Wage and Tax Statement, are inconsistent, petitioner
does not contest the identity of these individuals listed in the
notice of determination, and, therefore, we accept respondent’s
identification in the notice of determination. See Rule
34(b)(5).
3 For convenience, the term “employment taxes” refers to
taxes under the Federal Insurance Contributions Act (FICA), secs.
3101-3125, the Federal Unemployment Tax Act (FUTA), secs. 3301-
3311, and income tax withholding, secs. 3401-3406 and 3509.
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