Veterinary Surgical Consultants, P.C. - Page 17




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          dividends instead of reasonable compensation for services they              
          performed.  That revenue ruling held that the “dividends”                   
          constituted wages subject to Federal employment taxes.                      
               In this case, respondent’s position is supported by the plain          
          language of the statute, the applicable Treasury regulations,               
          published revenue rulings, and cases interpreting the applicable            
          statutes.  Petitioner’s position is inconsistent with the weight of         
          authority.                                                                  
               Petitioner argues that Dr. Sadanaga paid the maximum FICA tax          
          required by law in each year at issue and that respondent is                
          attempting to assess additional tax on Dr. Sadanaga in the form of          
          withholding taxes.  This argument is simply a “red herring”.  For           
          Federal employment tax purposes, the taxable wage base applies              
          separately to each employer.   Thus, if an employee receives wages          
          from more than one employer, the annual wage limitation does not            
          apply to the aggregate compensation received.  The employee however         
          may be eligible for a credit or refund of the excess employee               
          portion of the FICA tax that applies with respect to wages in               
          excess of the applicable wage base.  Secs. 31.3121(a)(1)-1(a)(3),           
          31.3306(b)(1)-1(a)(3), Employment Tax Regs.                                 
               We have considered all of petitioner’s arguments, and, to the          
          extent not specifically addressed, we find them unpersuasive or             
          irrelevant.                                                                 








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