Charlotte's Office Boutique, Inc. - Page 28

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          subparagraph (A), (B), or (C) of section 530(a)(2) of the Revenue           
          Act of 1978.                                                                
               Although not expressed by petitioner clearly, we understand            
          it to argue in its opening brief that Howard E. Clendenen, Inc.             
          v. Commissioner, 207 F.3d 1071 (8th Cir. 2000), affg. T.C. Memo.            
          1998-318, Springfield v. United States, 88 F.3d 750 (9th Cir.               
          1996), and Rev. Rul. 87-41, 1987-1 C.B. 296, support a finding              
          that it reasonably believed that Ms. Odell received the disputed            
          payments in other than her capacity as petitioner’s employee.  We           
          understand petitioner in its amended opening brief to expand that           
          list of cases and revenue ruling to include Idaho Ambucare Ctr.             
          Inc. v. United States, 57 F.3d 752 (9th Cir. 1995), United States           
          v. Bernstein, 179 F.2d 105 (4th Cir. 1949), United States v.                
          Aberdeen Aerie No. 24, 148 F.2d 655 (9th Cir. 1945), Ridge                  
          Country Club v. United States, 135 F.2d 718 (7th Cir. 1943), and            
          Rev. Rul. 58-505, 1958-2 C.B. 728.  The principle that petitioner           
          educes from these six cases and two revenue rulings is that an              
          individual such as Ms. Odell may perform services for a taxpayer            
          both as an employee and as an independent contractor.  Petitioner           
          concludes from this principle that petitioner is entitled to pay            
          to Ms. Odell both wages and other amounts such as rent and                  
          royalties.                                                                  









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