- 2 - On November 10, 1999, respondent issued to petitioner a Notice of Determination Concerning Worker Classification Under Section 7436 (notice of determination). In the notice of determination, respondent determined: (1) William Henderson (Mr. Henderson) was an employee of Olde Raleigh Realty Corporation (petitioner) for the tax periods ending December 31, 1995 and 1996, for purposes of Federal employment taxes, and (2) petitioner was not entitled to relief from these taxes as provided by section 530 of the Revenue Act of 1978, Pub. L. 95- 600, 92 Stat. 2885 (section 530 of 1978 Act). (For convenience, we sometimes use the term “employment taxes” to refer to taxes under the Federal Insurance Contributions Act (FICA-Social Security taxes) and Federal Unemployment Tax Act (FUTA- Unemployment taxes)). The proposed Federal employment taxes, additions to tax, and related penalties were detailed in the notice of determination as follows: Addition to tax Accuracy-related penalty Year Tax Tax Sec. 6656 Sec. 6662(a) 1995 FICA $10,105.01 $505.25 $2,021.00 1995 FUTA 434.00 43.40 86.80 1996 FICA 11,926.09 $596.30 2,385.22 1996 FUTA 434.20 43.42 86.84 After concessions by petitioner that Mr. Henderson should be legally classified as an employee of petitioner for purposes of Federal employment taxes and that petitioner is not entitled to relief under section 530 of the 1978 Act, the issues for decisionPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011