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basis provision was intended only as an interim solution to
disputes over common law employment status.
The subsequent history of section 530 is consistent with the
history described above. By amendments to section 530, the
interim solution encompassed in H.R. 14159, supra, has been
extended indefinitely. There is no indication in the legislative
history of these amendments that Congress sought to solve any
problem with respect to the classification of statutory
employees. Most recently, Congress amended section 530 by adding
subsection (e) thereto pursuant to section 1122 of the Small
Business Job Protection Act of 1996, Pub. L. 104-188, 110 Stat.
1766 (1996 Act). H. Conf. Rept. 104-737 (1996), 1996-3 C.B. 741,
is the conference committee report that accompanied H.R. 3448,
104th Cong., 2d Sess. (1996), which, as enacted, became the 1996
Act. H. Conf. Rept. 104-737, at 199 (1996), 1996-3 C.B. 741,
939, makes clear the conferees’ view: “[Section 530] generally
allows a taxpayer to treat a worker as not being an employee for
employment tax purposes * * *, regardless of the individual’s
actual status under the common-law test, unless the taxpayer has
no reasonable basis for such treatment.”
D. Conclusion
We find that petitioner is not entitled to relief under
section 530 on the alternative grounds that (1) petitioner had no
reasonable basis for not treating Mr. Grey as an employee, and
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