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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 for
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Last modified: May 25, 2011