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with that of the six video workers to come up with the deduction
for “wages” on Schedule C totaling $60,706. The amount deducted
for “contractual services” pertained to amounts expended for both
inside and outside maintenance at the two video store locations.
OPINION
Employees or Independent Contractors
Chapter 21 of subtitle C of the Internal Revenue Code
imposes the FICA tax, and chapter 23 of subtitle C of the
Internal Revenue Code imposes the FUTA tax.3 As applicable to
the facts of this case, the term “employee” means an individual
who under the usual common law rules has the status of employee.
Secs. 3121(d), 3306(i); Nationwide Mut. Ins. Co. v. Darden, 503
U.S. 318, 323 (1992); Weber v. Commissioner, 103 T.C. 378, 386
(1994), affd. 60 F.3d 1104 (4th Cir. 1995); Profl. & Executive
Leasing, Inc. v. Commissioner, 89 T.C. 225, 232 (1987), affd. 862
F.2d 751 (9th Cir. 1988).
Factors that are relevant in determining the substance of an
employment relationship include: (1) The degree of control
exercised by the principal over the details of the work; (2) the
worker’s investment in the facilities used in his or her work;
(3) the worker’s opportunity for profit or loss; (4) the
permanency of the relationship between the parties; (5) the
3 Because sec. 7491 applies only to taxes imposed by
subtit. A or B, it is inapplicable in this case.
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