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Respondent determined a deficiency of $1,643 in petitioner's
1996 Federal income tax. Petitioner concedes that he received
interest in the amount of $290 which is includable in his income.
We must decide whether petitioner received $10,638 which should
be included in his income.
Some of the facts in this case have been stipulated and are
so found. Petitioner resided in Madeira Beach, Florida, at the
time he filed his petition.
Petitioner worked part time as a legal clerk for Byron
Vaughan (Vaughan), Esquire, an attorney at law with an office in
Sarasota, Florida. Respondent received a Form 1099-MISC stating
that petitioner received nonemployee compensation from Vaughan in
the amount of $10,638 for the 1996 taxable year. Petitioner did
not report this amount on his 1996 return.
In reply to correspondence from respondent, petitioner, in a
letter received by the Internal Revenue Service on August 4,
1998, stated that:
Although I did receive the amounts claimed on pages two
and four of your letter, these pages misidentify the
$10,638 received from Byron Vaughan, Esquire, EIN 65-
0087578. This amount was a bonus paid to me by Mr.
Vaughan, my employer, and was not money received as
non-employee compensation, nor was it money received by
a self-employed individual.
As such, I believe that Mr. Vaughan had an
obligation to withhold both social security taxes and
withholding taxes on that amount.
On October 7, 1998, petitioner wrote to the Internal Revenue
Service and stated that:
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