-23-
918 F.2d 90, 93 (9th Cir. 1990). An officer who performs
substantial services for a corporation and who receives
remuneration in any form for those services is considered an
employee, and his or her wages are subject to the employer’s
payment of Federal employment taxes. Veterinary Surgical
Consultants, P.C. v. Commissioner, 117 T.C. 141, 145 (2001),
affd. sub nom. Yeagle Drywall Co. v. Commissioner, 54 Fed. Appx.
100 (3d Cir. 2002).
Respondent determined that the disputed amounts were wages.
Respondent contends that Ms. Odell was petitioner’s officer and
that she performed substantial services for petitioner in that
capacity. We agree. We are persuaded by the record that Ms.
Odell performed vital and substantial services for petitioner as
its president, that she and her labor were petitioner’s principal
generator of income, and that the disputed payments were indeed
remuneration that petitioner paid to her for services which she
performed in its business. In fact, with the exception of a
small number of outside laborers, who expended minimal labor in
petitioner’s business, Ms. Odell and her husband were the only
individuals who actually worked for petitioner. Whereas Mr.
Odell opted not to be compensated directly by petitioner for his
vital and substantial services, this choice obviously was made
with the knowledge that any benefit from his services would flow
directly to only him and his wife. The services of the Odells,
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