-29-
Although we have no qualm with the principle educed by
petitioner or its conclusion as to that principle, we do not
believe that the cited cases or revenue rulings support a finding
that petitioner reasonably believed that it paid the disputed
amounts to Ms. Odell in other than her capacity as an employee.
In fact, Spicer Accounting, Inc. v. United States, 918 F.2d 90
(9th Cir. 1990), and Joseph Radtke, S.C. v. United States,
895 F.2d 1196 (7th Cir. 1990), two highly relevant cases that
petitioner did not mention as to this issue,9 lead to the
conclusion that petitioner in fact paid the disputed amounts to
Ms. Odell as wages. Cf. W. Mgmt. Inc. v. United States, 45 Fed.
Cl. 543, 554 n.11 (2000) (court noted that on the basis of Spicer
and Van Camp & Bennion, P.S. v. United States, 78 AFTR 2d 5843,
96-2 USTC par. 50,438 (E.D. Wash. 1996), a second case in which
Mr. Kovacevich was counsel of record, it was “unlikely” that the
plaintiff corporation, a professional service corporation of
which he was president, met the reasonable basis requirement of
section 530 of the Revenue Act of 1978). We hold that petitioner
lacked a reasonable basis not to treat Ms. Odell as an employee
9 Robert E. Kovacevich (Mr. Kovacevich), petitioner’s
counsel herein, was counsel of record in Spicer Accounting, Inc.
v. United States, 918 F.2d 90 (9th Cir. 1990).
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