Dennis Katz, D.D.S., P.C. - Page 7

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          those forms, and section 530 relief would not be available.  See            
          Western Management, Inc. v. United States, 45 Fed. Cl. 543, 553-            
          554 (2000); see also General Inv. Corp. v. United States, 823               
          F.2d 337, 341 (9th Cir. 1987); Pariani v. Commissioner, T.C.                
          Memo. 1997-427.                                                             
               Petitioner’s guiding argument is relatively simple and may             
          be stated as follows.  If petitioner is not recognized as an                
          corporate entity for tax purposes, it was not required to file              
          Forms 1099, and Dr. Katz, then operating as a sole                          
          proprietorship, would not have been an employee.  Dr. Katz,                 
          therefore, would not be an employee of his own proprietorship.              
          We turn to that question.                                                   
          2.  The Corporate Entity                                                    
               As a general rule, a corporation is recognized as a distinct           
          taxable entity from its shareholders even though it has only one            
          shareholder who exercises total control over its affairs.  Moline           
          Properties, Inc. v. Commissioner, 319 U.S. 436 (1943).  This                
          recognition extends to corporations formed to perform personal              
          services rendered by its shareholders.  Keller v. Commissioner,             
          77 T.C. 1014 (1981), affd. 723 F.2d 58 (10th Cir. 1983).4  There            
          are, however, situations where the corporate entity will be                 

          4   The decision in Keller v. Commissioner, 77 T.C. 1014 (1981),            
          affd. 723 F.2d 58 (10th Cir. 1983), turns on an allocation of               
          income under sec. 482.  For there to be a sec. 482 allocation,              
          however, there must be two or more recognizable entities.                   

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