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commission on their sales or the difference between the price
they charge the customers and the price they pay for the product
or service. Sec. 31.3121(d)-1(d)(3)(i), Employment Tax Regs.
The route distributors fit within the definition of agent-
driver and commission-driver provided in the Code and
regulations. They each performed substantially all the
distribution of bakery products for petitioner. The route
distributors did not have a substantial investment in the
facilities other than those used for transportation. The record
does not establish that their services were in the nature of a
single transaction. The route distributors served customers
designated by petitioner as well as those they solicited on their
own, and their compensation was either a commission on their
sales or the difference between the price they charged and the
price they paid for petitioner’s bakery products. Therefore, we
conclude that the route distributors were statutory employees.
III. Section 530
Congress enacted section 530 to alleviate what it perceived
as the “overly zealous pursuit and assessment of taxes and
penalties against employers who had, in good faith, misclassified
their employees as independent contractors.” Boles Trucking,
Inc. v. United States, 77 F.3d at 239. Thus, despite our
conclusion that the cash payroll workers, bakery workers, route
distributors, and outside sales workers were employees of
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