Ronald McLean Eastern Video - Page 9




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          necessary supplies and equipment for them to perform their                  
          duties.  It paid all expenses required to attempt to collect the            
          lates.  Mr. McLean, and to some extent his administrative                   
          assistant, supervised the process within which the video workers            
          worked.  At least three of the four were sometimes assigned to              
          work at the North Moreland location to perform duties the same as           
          or similar to those of the two teenage employees working at that            
          location.                                                                   
               In this case the Court is satisfied that petitioner had the            
          authority to exercise, and did exercise, sufficient control over            
          the video workers to support a finding that it was their                    
          employer.  See Potter v. Commissioner, T.C. Memo. 1994-356;                 
          Bilenas v. Commissioner, T.C. Memo. 1983-661.  In addition, the             
          Court finds that:  (1) The investment in the facilities used in             
          the work of the video workers was made by petitioner; (2) the pay           
          of the video workers was fixed, thereby eliminating the                     
          opportunity for “profit” or loss; (3) the work performed by the             
          video workers was an integral part of petitioner’s business; and            
          (4) petitioner considered them employees.  Indeed, Mr. McLean’s             
          testimony indicates that because of his prior bad experiences               
          with outside contractors his intent at the outset was to hire               
          employees to collect the “lates”.                                           










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