- 6 - necessary business expenses, and petitioner failed to substantiate the expenses. 1. Statutory Employee Petitioner contends that he was a statutory employee under section 3121(d)(3)(A), as he was a commission-driver who delivered bakery products. Section 3121(d) defines “employee” for employment tax purposes as follows: SEC. 3121(d). Employee.--For purposes of this chapter, the term “employee” means-- (1) any officer of a corporation; or (2) any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee; or (3) any individual (other than an individual who is an employee under paragraph (1) or (2)) who performs services for remuneration for any person-- (A) as an agent-driver or commission- driver engaged in distributing meat products, vegetable products, bakery products, beverages (other than milk), or laundry or dry-cleaning services, for his principal; [Emphasis added.] A taxpayer cannot be a “statutory employee” under section 3121(d)(3)(A) unless he is not a common-law employee under section 3121(d)(2). We therefore must decide whether petitioner was a common-law employee or independent contractor, andPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011