Dennis Katz, D.D.S., P.C. - Page 11

                                       - 11 -                                         
          employee.  See, e.g., Keller v. Commissioner, 77 T.C. 1014                  
          (1981).  But, the corporate form may also have detriments, and we           
          would be reluctant to allow petitioner to turn on and off its               
          existence at will.6                                                         
                                             Decision will be entered                 
                                        for respondent.                               

          6   The second part of the sec. 530 relief relates to a                     
          taxpayer’s having a reasonable basis for treating the person to             
          whom the compensation was paid as other than an employee.  In               
          this regard, under sec. 530(a)(2) a taxpayer is treated as having           
          a reasonable basis for not treating an individual as an employee            
          if the taxpayer relied, inter alia, on “a past Internal Revenue             
          Service audit * * * in which there was no assessment attributable           
          to the treatment (for employment tax purposes) of the individuals           
          holding positions substantially similar to the position held by             
          this individual”.  Sec. 530(a)(2)(B).  Petitioner suggests that             
          the audits of Dr. Katz’s returns would satisfy this requirement.            
          We, however, need not decide this issue.                                    

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

Last modified: May 25, 2011