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employees. In 1991, petitioner issued the bakery workers Forms
W-2, Wage and Tax Statement. In 1992, 30 out of petitioner’s 37
bakery workers received Forms 1099. Of the seven who did not
receive a Form 1099, only two earned less than $600.4
The cash payroll workers were a family of six or seven
individuals known as “the Rusli group”. The Rusli group was not
a corporation. The Rusli group worked for petitioner for a
number of years prior to 1992. The Rusli group performed the
same work as the bakery workers. Since 1987, pursuant to a
written agreement between the Rusli group and petitioner, the
Rusli group also supervised the bakery workers. In 1992,
petitioner did not issue Forms 1099 to any of the cash payroll
workers.
The route distributors transported petitioner’s product from
its plant to individuals or businesses who purchased the product.
Some route distributors bought the product and resold it for a
higher price; others worked on a commission basis. The route
distributors drove their own vehicles. Petitioner did not set
the hours the route distributors worked.
In 1991, petitioner issued at least one route distributor,
4 Petitioner, however, did issue Forms 1099 to six bakery
workers who earned less than $600.
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Last modified: May 25, 2011