Mike J. Graham Trucking, Inc. - Page 6




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          determination that Graham was to be legally classified as an                
          employee for purposes of Federal employment taxes and that                  
          petitioner was not entitled to relief from such classification              
          pursuant to Section 530.  Enclosed with the notice was a schedule           
          setting forth petitioner’s liabilities for FICA and FUTA taxes.             
               The parties have stipulated that, if the Court decides that            
          Graham is to be classified as an employee for Federal employment            
          tax purposes for all periods in 1995, 1996, and 1997, the amounts           
          of taxes due and owing are as set forth in the notice of                    
          determination.  Conversely, if the Court decides that Graham                
          should not be classified as an employee for any of the periods in           
          issue, the parties agree that petitioner owes no employment                 
          taxes.                                                                      
                              ULTIMATE FINDINGS OF FACT                               
               Graham, as president of petitioner, performed more than                
          minor services and received remuneration therefor.                          
               Petitioner did not have a reasonable basis for failing to              
          treat Graham as an employee during the years in issue.                      
                                       OPINION                                        
          I.  Statutory and Regulatory Provisions                                     
               A.  Subtitle C of the Internal Revenue Code                            
               Subtitle C of the Internal Revenue Code governs payment of             
          employment taxes.  In particular, sections 3111 and 3301 impose             
          taxes on employers under FICA (pertaining to Social Security) and           






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Last modified: May 25, 2011