Dennis Katz, D.D.S., P.C. - Page 5

                                        - 5 -                                         
          1.  The Statutory Background                                                
               Sections 3111 and 3301 impose taxes upon employers under the           
          Federal Insurance Contributions Act (FICA) and the Federal                  
          Unemployment Tax Act (FUTA), respectively, commonly referred to             
          as employment taxes, based on the wages paid to employees.  In              
          this case it is stipulated that, if petitioner’s corporate entity           
          is not disregarded, Dr. Katz was an employee for employment tax             
          purposes.  See sec. 3121(d) and the regulations thereunder.2                
          Petitioner, however, argues that under section 530 of the Revenue           
          Act of 1978, Pub. L. 95-600, 92 Stat. 2763, 2885 (hereinafter               
          section 530),3 Dr. Katz should not be deemed to be an employee.             
               Section 530(a)(1) provides:                                            
                    SEC. 530.  CONTROVERSIES INVOLVING WHETHER INDIVIDUALS            
                              ARE EMPLOYEES FOR PURPOSES OF THE EMPLOYMENT            
                    (a) Termination of Certain Employment Tax Liability for           
               Periods Before 1980.-–,                                                
                    (1) In general.–-If-–                                             
                         (A) for purposes of employment taxes, the taxpayer           
                    did not treat an individual as an employee for any                
                    period ending before January 1, 1980, and                         

          2   Sec. 3121(d)(1) defines an employee, inter alia, as “any                
          officer of a corporation”.  See also sec. 3306(i).                          
          3  Sec. 530 was amended by adding subsection (e).  See Small                
          Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1122,            
          110 Stat. 1766.  This amendment has no effect on the resolution             
          of this case.                                                               

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011