- 10 -
Accordingly, the Court finds that respondent’s determination
as to the classification of the workers in this case as employees
is correct.
Section 530
Even though the Court finds that the six video workers were
employees, section 530 will relieve petitioner of employment tax
liability for the periods at issue if the requirements of section
530 are satisfied. If petitioner shows that it: (1) Has not
treated any of the video workers as employees for any period; and
(2) has filed all Federal tax returns (including information
returns) with respect to each video worker on a basis consistent
with its treatment of each individual as not being an employee,
petitioner will prevail unless it has no reasonable basis for not
treating the video workers as employees. Revenue Act of 1978,
sec. 530(a)(1), (3), 92 Stat. 2885, 2886.
Respondent concedes that Forms 1099 were timely filed for
each of the six video workers under consideration. He alleges,
however, that the video workers performed substantially the same
duties as petitioner’s three full-time employees, yet were
treated as independent contractors. He also alleges that
petitioner has failed to establish that it had any reasonable
basis to treat the video workers as independent contractors. The
Court will consider first whether petitioner has failed to
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011