Olde Raleigh Realty Corporation - Page 5




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          solicited clients and business on behalf of petitioner, entered             
          into verbal and written agreements on behalf of petitioner,                 
          oversaw petitioner’s finances, managed petitioner, hired and                
          fired independent contractors on behalf of petitioner, made                 
          investment decisions on behalf of petitioner, entered into                  
          development projects on behalf of petitioner, and had signatory             
          authority over petitioner’s bank accounts.                                  
               During 1995, petitioner recognized that the following                  
          persons were employees:  B.J. Stanfield, office assistant; Brenda           
          M. Gray, office assistant; and Michael Giaquinto, development               
          troubleshooting/assistant to Mr. Henderson.  Petitioner timely              
          filed Forms 941, Employer’s Quarterly Federal Tax Return, for               
          each quarter in 1995 and 1996.  Petitioner also timely filed                
          Forms 940-EZ, Employer’s Annual Federal Unemployment Tax Return,            
          for both 1995 and 1996.                                                     
               Petitioner did not issue Forms W-2, Wage and Tax Statement,            
          or Forms 1099-MISC, Miscellaneous Income, to Mr. Henderson in               
          1995 or 1996.                                                               
               During 1995, petitioner paid from its own bank account                 
          $96,766 of Mr. Henderson’s personal expenses.  (All dollar                  
          amounts are rounded off in this opinion.)  Likewise, during 1996            
          petitioner paid from its own bank account $143,221 of Mr.                   
          Henderson’s personal expenses.                                              
               In the notice of determination, respondent based the FICA              






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Last modified: May 25, 2011