- 7 -
whether the Secretary’s determination of worker classification is
correct and to determine the amount of employment taxes,
additions to tax, and penalties provided by Chapter 68 of
Subtitle F (sections 6651 through 6751). Ewens & Miller, Inc. v.
Commissioner, 117 T.C. 263, 267-268 (2001).
Sections 3111 and 3301 impose FICA and FUTA taxes on
employers for wages paid to their employees. Wages for FICA and
FUTA purposes are defined as “all remuneration for employment,
including the cash value of all remuneration (including benefits)
paid in any medium other than cash” with exceptions not
applicable in this case. Secs. 3121(a), 3306(b). Generally, the
form of payment is immaterial. Secs. 31.3121(a)-1(c) and (d),
31.3306(b)-1(b), (e), Employment Tax Regs. Payment can be made
in cash or something other than cash. Secs. 31.3121(a)-1(c) and
(d), 31.3306(b)-1(b), (e), Employment Tax Regs. Thus, “an
officer who performs substantial services for a corporation and
who receives remuneration in any form for those services is
considered an employee whose wages are subject to Federal
employment taxes.” Veterinary Surgical Consultants, P.C. v.
Commissioner, 117 T.C. 141, 145 (2001).
Petitioner sought to prove the existence of an oral
agreement between the corporation represented by its president,
Mr. Henderson, and its sole shareholder, Mr. Henderson. In
essence, petitioner seeks to prove an oral agreement by Mr.
Page: 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