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The video workers were paid a total of $10,162 in income
reported by Forms 1099-MISC, Miscellaneous Income. The video
workers were hired with the intent of having them collect late
fees and overdue video tapes, “lates”. Because of bad
experiences in the past with hiring “outsiders” to collect his
“lates”, Mr. McLean decided “to hire some people and they’re
going to have to work within my operation.”
Two of the six video workers, however, Tracey Ashley and
Eric Patrick, were teenagers who, according to Mr. McLean, were
“employees that worked” after school about 10 hours a week at the
“North Moreland” location. They were not experienced at
collection work, and there was not much collection work being
done at their location. Their primary function was not
collection. Mr. McLean concedes that, with respect to the
teenagers, “to be perfectly honest with you, they could be
considered as W-2 employees.”
The other four video workers were at the “Metropolitan”
location. It is a free-standing building. They worked in the
back where there were three desks, a storage area, a
refrigerator, and a water cooler. There were phones and
computers. They got the names of “lates” and nonreturns from
printouts made by petitioner. All the video workers, including
those at the Metropolitan location, were paid by the hour. They
used petitioner’s pencils, calculators, and telephones, and all
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Last modified: May 25, 2011