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employee”. Sec. 3121(d)(2). The relevant factors taken into
account to determine the status of an individual as an employee
or independent contractor include: (1) The degree of control
exercised by the principal over the details of the work; (2)
which party invests in the facilities used in the work; (3) the
opportunity of the hired party for profit or loss; (4) whether
the type of work is part of the principal's regular business; (5)
the permanency of the relationship between the parties to the
relationship; (6) whether the principal has the right to
discharge the individual; (7) whether the principal provides
benefits to the hired party typical of those provided to
employees; and (8) the relationship the parties believe they are
creating. Profl. & Executive Leasing, Inc. v. Commissioner, 89
T.C. 225, 232 (1987), affd. 862 F.2d 751 (9th Cir. 1988); see
also United States v. Silk, 331 U.S. 704, 716 (1947). Although
no single factor is determinative, “employer control over the
manner in which the work is performed * * * is the basic test.”
Gen. Inv. Corp. v. United States, 823 F.2d 337, 341 (9th Cir.
1987).
Respondent’s position that petitioner was not an employee of
AAA during 1997 seems to be entirely based upon the agreement,
which, in fact, does undermine petitioners’ position to the
contrary. Nevertheless, the application of the other relevant
factors leads to the conclusion that AAA possessed and exercised
sufficient control over the services performed by petitioner so
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