- 6 - running errands, filing, photocopying, preparing outgoing mail, and tracking and paying bills. Petitioner did not file Forms 941 for any of the years in issue for either Smith or Mawson. Petitioner did not file any Forms 1099-MISC, Miscellaneous Income, for the work that Smith and Mawson performed. During the years in issue, petitioner reported income from his law firm on a Schedule C, Profit or Loss From Business. Petitioner reported payments to Smith and Mawson as “negative receipts” on the Schedule C and failed to indicate that deductions were being taken for payments made for secretarial services. OPINION Employment Status Whether an employer-employee relationship exists in a particular situation is a factual question. Weber v. Commissioner, 103 T.C. 378, 386 (1994), affd. per curiam 60 F.3d 1104 (4th Cir. 1995). For the purposes of employment taxes, the term “employee” includes “any individual who, under the usual common law rules applicable in determining the employer-employee relationship has the status of an employee”. Sec. 3121(d)(2); sec. 3306(i). Section 31.3121(d)-1(c)(2), Employment Tax Regs., defines the common law employer-employee relationship as follows: (2) Generally such relationship exists when the person for whom services are performed has the right to control and direct the individual who performs the services, not only as to the result to be accomplished by the work but also as to the details and means byPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011