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This Court granted R’s motion to sever and
continue determinations of worker classification and
proper employment taxes until after our consideration
of P’s eligibility for relief under sec. 530.
Held: Because P did not treat the physicians as
employees for any period, filed all Federal tax returns
on a basis consistent with P’s treatment of the
physicians as not being employees, and had a reasonable
basis for not treating the physicians as employees, P
is entitled to relief from employment tax liability
pursuant to sec. 530. P’s untimely filing of
information returns does not preclude P from qualifying
for such relief, particularly in the circumstances of
this case.
Carmen J. Mitchell, for petitioner.
Linda C. Grobe and David S. Weiner, for respondent.
NIMS, Judge: The petition in this case was filed in
response to a Notice of Determination Concerning Worker
Classification Under Section 7436 (notice of determination)
regarding petitioner’s liabilities pursuant to the Federal
Insurance Contributions Act (FICA), sections 3101-3128, and the
Federal Unemployment Tax Act (FUTA), sections 3301-3311, for
1996. Respondent also determined that petitioner is not entitled
to relief under section 530 of the Revenue Act of 1978, Pub. L.
95-600, 92 Stat. 2885, as amended (section 530).
On February 20, 2002, this Court granted respondent’s motion
to sever and continue determinations of worker classification and
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