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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.
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