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calls. If petitioner returned within a short time, the off-duty
employer would pay petitioner for his entire scheduled shift. In
the event that he could not return, he would immediately notify
the off-duty employer. Each such employer paid petitioner
directly and issued a Form 1099-MISC, Miscellaneous Income. TPD
did not consider petitioner on-duty while working off-duty
assignments and did not pay him overtime. On his timely filed
1998 Federal income tax return, petitioner reported $39,487 in
wages (i.e., $32,089 from TPD and $7,398 from off-duty
assignments). On May 11, 2001, respondent reclassified the
$7,398 as self-employment income and determined an $891
deficiency.
On August 8, 2001, petitioner, while residing in Tampa,
Florida, filed his petition with the Court.
OPINION
Petitioner’s only contention is that he was an employee of
TPD while working off-duty assignments. Section 1401 imposes a
tax upon a taxpayer’s self-employment income. Self-employment
income consists of gross income derived by an individual from any
trade or business carried on by such individual. Sec. 1402(a).
The self-employment tax, however, does not apply to compensation
paid to an employee. Sec. 1402(c)(2).
Section 3121(d)(2) defines an employee as “any individual
who, under the usual common law rules applicable in determining
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