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the petition petitioners admitted that “Mr. Mangels was an
employee and usually paid by personal check or in cash.” We find
petitioner’s testimony to be lacking in credibility.
We note that petitioner did not provide any records as to
income or expenses relating to work performed for Sal Parziale or
JWH. Further, petitioner did not report any income from either
of these two sources on his Federal income tax return for 1997.
The records produced by respondent’s witness, Joseph Parziale,
did not accurately represent actual amounts paid to petitioner.
The witness described the amounts reflected on folders for
various projects as amounts “bid” on a project. The witness
further indicated that amounts were paid in part to petitioner
and in part to other workmen (alleged subcontractors of
petitioner).
We conclude, based on this record, that in addition to
$11,471 of omitted income conceded by petitioner, he received an
additional $8,000 (total omitted income from this source of
$19,471).
Employee or Independent Contractor
An independent contractor is subject to self-employment tax
under section 1401. Sec. 1402(a). Whether an individual is an
employee or independent contractor is a factual question to which
common law principles apply. Secs. 3101, 3121(d)(2); Nationwide
Mut. Ins. Co. v. Darden, 503 U.S. 318, 323 (1992); Weber v.
Commissioner, 103 T.C. 378, 386 (1994), affd. 60 F.3d 1104 (4th
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