119 T.C. No. 5
UNITED STATES TAX COURT
JOSEPH M. GREY PUBLIC ACCOUNTANT, P.C., Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 4789-00. Filed September 16, 2002.
This is an action for redetermination of employment
status. G is the president and sole shareholder of P, an
S corporation. P failed to treat G as an employee. R
determined that G was an employee of P’s for purposes of
Federal employment taxes.
1. Held: P is subject to Federal employment taxes
since G, an officer, is an employee within the meaning of
secs. 3121(d)(1) and 3306(i), I.R.C.
2. Held, further, P had no reasonable basis for not
treating G as an employee and therefore is not entitled to
relief pursuant to sec. 530 of the Revenue Act of 1978,
Pub. L. 95-600, 92 Stat. 2763, 2885, as amended.
3. Held, further, alternatively, P is not entitled to
relief under sec. 530 of the Revenue Act of 1978,
because such provision is limited to worker classification
issues arising under the common law.
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