- 10 - listed in the notice of determination were employees in the years at issue. We arrive at this conclusion based on the following facts. There is no evidence that the parties believed they were creating an independent contractor relationship besides petitioner’s self-serving testimony. Forms W-2 were purportedly issued for tax year 1994 to individuals he treated as employees during 1994. However, the record shows that Forms W-2 were also issued to a number of beauticians, including those that provided services after the first quarter of 1994. Contrary to Mr. Brents’ testimony, there are no records of Forms 1099 issued to any of the beauticians during 1994 or 1995, including those who petitioner contends were independent contractors. No beauticians testified at trial. Petitioner relies on the terms of the purported chair rental agreements to establish that the beauticians were independent contractors. He also relies on these contracts to show the parties’ intentions. At trial, petitioner referred to a number of contracts he entered into with the various beauticians who provided services for him during the years at issue, but failed to produce any contracts. Without the contracts in the record for our review, we cannot assume that petitioner created an independent contractor relationship with the beauticians. Petitioner had the authority to terminate a beautician forPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011