George A. and Hilda Quintero - Page 8

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          trade or business carried on by such individual, less the                   
          deductions allowed * * * which are attributable to such trade or            
          business".  Sec. 1402(a) and (b).  Other than under circumstances           
          not present in this case, services performed by an individual as            
          an employee do not constitute a trade or business for self-                 
          employment tax purposes.  Sec. 1402(c)(2).                                  
               According to respondent, the compensation that petitioner              
          received from AAA during 1997 constitutes self-employment income            
          subject to tax under section 1401.  Petitioners, having failed to           
          report any such income on their 1997 return, did not report any             
          section 1401 tax on that return.  They now claim that petitioner            
          performed services for AAA during 1997 as an employee rather than           
          an independent contractor.                                                  
               The question of whether an individual performs services for            
          another as an employee or independent contractor is generally               
          considered a question of fact.  Packard v. Commissioner, 63 T.C.            
          621, 629 (1975).  In resolving such questions, this and other               
          Federal courts apply what is commonly referred to as the common             
          law test embodied in sections 31.3121(d)-1(c)(2) and 31.3401(c)-            
          1(b), Employment Tax Regs.  Matthews v. Commissioner, 907 F.2d              
          1173, 1178 (D.C. Cir. 1990), affg. 92 T.C. 351 (1989); Packard v.           
          Commissioner, supra.  An employee is defined as “any individual             
          who, under the usual common law rules applicable in determining             
          the employer-employee relationship, has the status of an                    

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