Yeagle Drywall Company, Inc. - Page 2




                                        - 2 -                                         
          sole issue to be decided is whether John G. Yeagle (Mr. Yeagle) is          
          an employee of petitioner for the period at issue (each of the four         
          quarters of 1995, 1996, and 1997) for purposes of Federal                   
          employment taxes.1                                                          
               Rule references are to the Tax Court Rules of Practice and             
          Procedure, and except as otherwise noted, section references are to         
          the Internal Revenue Code in effect for the years at issue.                 
                                     Background                                       
               The stipulation of facts and the attached exhibits are                 
          incorporated herein.  The stipulated facts are hereby found.                
               Petitioner is an S corporation that was incorporated in                
          Pennsylvania on October 2, 1989.  At the time the petition was              
          filed, petitioner’s principal place of business was in Quakertown,          
          Pennsylvania.  Petitioner operates a drywall construction business          
          that is the sole source of petitioner’s income.  Mr. Yeagle owns 99         
          percent of petitioner’s stock.  Mr. Yeagle’s wife, Terree Yeagle            
          (Mrs. Yeagle), owns the remaining 1 percent.  Since petitioner’s            
          incorporation, Mr. Yeagle has been its president, and Mrs. Yeagle           
          has been its vice president and secretary.                                  
               Mr. Yeagle performs many services for petitioner, including            
          soliciting business, ordering supplies, entering into oral and              


               1    For convenience, we use the term "Federal employment              
          tax" to refer to taxes under secs. 3101-3125 (enacted as Federal            
          Insurance Contributions Act (FICA), ch. 9, 53 Stat. 175 (1939))             
          and secs. 3301-3311 (enacted as Federal Unemployment Tax Act                
          (FUTA), ch. 9, 53 Stat. 183 (1939)).                                        




Page:  Previous  1  2  3  4  5  6  7  8  9  Next

Last modified: May 25, 2011