Stephen J. Major - Page 9

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          business.  Sec. 1402(a).                                                    
               Respondent contends that petitioner is liable for the self-            
          employment tax because the $24,000 was commission income in                 
          petitioner’s trade or business as a salesperson.  We disagree.              
               For purposes of section 1401, “trade or business” shares the           
          same definition as when used in section 162.  Sec. 1402(c).                 
          However, an exception exists where the performance of service is            
          by an individual as an employee.  Sec. 1402(c)(2).  Section                 
          1.1402(c)-3, Income Tax Regs., states as follows:                           
               the performance of service by an individual as an                      
               employee, as defined in the Federal Insurance                          
               Contributions Act (chapter 21 of the Internal Revenue                  
               Code) does not constitute a trade or business within                   
               the meaning of section 1402(c) and section 1.1402(c)-1.                
               * * *                                                                  
          Petitioner was a full-time, salaried employee of QSN during the             
          year in issue.  He did not engage in a trade or business subject            
          to the self-employment tax during the year in issue.                        
               Accordingly, petitioner is not subject to self-employment              
          tax.  Petitioner is sustained on this issue.                                
          Section 6662(a)                                                             
               The last issue for decision is whether petitioner is liable            
          for an accuracy-related penalty pursuant to section 6662(a) for             
          the year in issue.  Section 6662(a) imposes a penalty of 20                 
          percent of the portion of the underpayment which is attributable            
          to negligence or disregard of rules or regulations.  Sec.                   
          6662(b)(1).  Negligence is the “‘lack of due care or failure to             

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