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does not generally depend on the common law principles. One such
category of statutory employee, which is relied on by petitioner,
is described in section 3121(d)(3)(A) as follows: “an agent-
driver or commission-driver engaged in distributing meat
products, vegetable products, fruit products, bakery products,
beverages (other than milk), or laundry or dry-cleaning services,
for his principal.” If petitioner can show that he comes within
that definition and that he is not a “common law employee” as set
forth in section 3121(d)(2), he will be entitled to use Schedule
C to report his income and deductions.
Petitioner also relies on section 3508, which affords
nonemployee status to certain statutorily defined classes of
activities. In particular, that section applies to real estate
agents and direct sellers. Petitioner contends that he is a
direct seller.
Generally, a “direct seller” is defined in section
3508(b)(2)(A) as a person engaged in the trade or business of
either selling consumer products in the home as opposed to a
permanent retail establishment or delivering or distributing
newspapers or shopping news. Section 3508(b)(2)(B) also requires
that to qualify for direct seller status, petitioner must receive
renumeration related to sales, rather than to the number of hours
worked. Finally, section 3508(b)(2)(C) requires that petitioner
perform services pursuant to a written contract that provides
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