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performance of services as an employee. Rev. Rul. 90-93, 1990-2
C.B. 33. Thus, an individual who is a statutory employee under
section 3121(d)(3) is allowed to deduct expenses from gross
income that otherwise would be subject to the 2-percent
limitation of section 67(a).
An employee for employment tax purposes is defined in
pertinent part by section 3121(d) as follows:
SEC. 3121(d). Employee.--For purposes of this chapter,
the term "employee" means--
(1) any officer of a corporation; or
(2) any individual who, under the usual common law
rules applicable in determining the employer-employee
relationship, has the status of an employee; or
(3) any individual (other than an individual who
is an employee under paragraph (1) or (2)) who performs
services for remuneration for any person--
(A) as an agent-driver or commission-driver
engaged in distributing meat products, vegetable
products, bakery products, beverages (other than
milk), or laundry or dry-cleaning services, for
his principal; [Emphasis added.]
* * * * * * *
if the contract of service contemplates that substantially
all of such services are to be performed personally by such
individual; except that an individual shall not be included
in the term "employee" under the provisions of this
paragraph if such individual has a substantial investment in
facilities used in connection with the performance of such
services (other than in facilities for transportation) * * *
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