Charles R. Clarke, D.B.A. Maxi's Today's Hair - Page 16




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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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