- 13 -
identify these refund amounts in response to discovery requests.
We are not persuaded that these amounts should be offset against
petitioners’ unreported income from NHIL.
II. Employment Status
Respondent determined in the notice of deficiency that
$20,760 reported on petitioners’ Schedule C as income from NHIL
should be recharacterized as wages and that the business
deductions claimed by petitioners on Schedule C should be
disallowed for lack of substantiation or claimed only as employee
expenses on Schedule A, Itemized Deductions. Respondent argues
that petitioner was an employee of NHIL because he was an officer
who performed substantial services for NHIL.
Petitioner asserts that he was not an employee of NHIL.
Petitioners rely on several arguments that have been rejected in
analogous circumstances.
Under section 3121(d)(2), the term “employee” includes any
individual who has the status of an employee under the common
law. Paragraphs (1), (3), and (4) of section 3121(d) describe
other individuals who are considered employees regardless of
their status under the common law. Individuals described within
those paragraphs are commonly referred to as “statutory”
employees. See Joseph M. Grey Pub. Accountant, P.C. v.
Commissioner, 119 T.C. 121, 126 (2002).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011