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In the case before us, it is clear that petitioner is not in a
situation tantamount to the protections intended by Congress.
Petitioner contends that he should not be responsible for
the beauticians’ taxes because “[the beauticians] didn’t choose
to file their taxes, and I don’t feel that I should be burdened
with their taxes.” Congress has provided a statutory safe harbor
for taxpayers in petitioner’s situation. Petitioner could have
avoided this result had he complied with these requirements.
Because the safe harbor of section 530 does not provide
relief to petitioner, and in accord with our finding above that
the beauticians were petitioner’s employees rather than
independent contractors, we hold that petitioner is liable for
the employment taxes due as stated in the notice of
determination. Respondent is sustained on this issue.
Sections 6651 and 6656
Respondent determined additions to tax for failure to timely
file tax returns and make timely deposits on tax liability
pursuant to sections 6651(a)(1) and 6656(a).
Section 6651(a)(1) imposes an addition to tax for failure to
timely file a tax return. The addition to tax is equal to 5
percent of the amount of the tax required to be shown on the
return if the failure to file is not for more than 1 month. Sec.
6651(a)(1). An additional 5 percent is imposed for each month or
fraction thereof in which the failure to file continues, to a
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