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petitioner’s income by $12,846, the amount reported on a Form
1099-Misc., Nonemployee Compensation, issued to petitioner by the
law firm. Respondent further proposed that the increased income
constituted net earnings from self-employment.
By letter dated December 22, 1992, petitioner disagreed with
the adjustments proposed by respondent. In that letter
petitioner indicated that the income from the law firm was “still
in dispute” and challenged respondent’s claim that she was self-
employed during 1990. Attached to her letter is a copy of a Form
SS-8, Information for Use in Determining Whether a Worker is an
Employee for Federal Employment Taxes and Income Tax Withholding.
No deficiency has been determined with respect to
petitioner’s 1990 Federal income tax. Although the timing is not
entirely clear, at some point after receipt of petitioner’s
December 22, 1992, letter, respondent recognized that $11,767 of
the $12,846 reported on the above-mentioned Form 1099 had been
included in the wages reported on petitioner’s 1990 return.
After further examination, respondent also accepted petitioner’s
claim that she was an employee of the law firm during 1990 and
therefore not liable for any self-employment tax. Petitioner was
notified of respondent’s decision as to her employment status by
letter dated May 4, 1993.
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