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practice of the emergency medicine industry, and thus had a
reasonable basis for not treating the reclassified physicians as
employees. Consequently, petitioner satisfied the requirement in
the flush language of section 530(a).
The parties disagree about whether petitioner satisfied the
requirement of section 530(a)(1)(B), which provides that the
taxpayer must file all required Federal tax returns (including
information returns) on a basis consistent with the treatment of
the individual as not being an employee. The parties agree that
petitioner ultimately filed all returns (including information
returns) on a basis consistent with the treatment of the
reclassified physicians as not being employees. However,
respondent maintains that “It is respondent’s position that part
of the reporting consistency requirement in section 530(a)(1)(B),
is that the required returns be filed timely.” Respondent argues
that since petitioner failed to timely file Forms 1096 and 1099
for the periods in question, the relief provided by section 530
is unavailable to petitioner.
Petitioner does not dispute that it was required to file
Forms 1096 and 1099. Petitioner, however, argues that since
section 530(a)(1)(B) is silent as to timeliness, the required
returns merely have to be filed, not timely filed, for a taxpayer
to satisfy the requirement of section 530(a)(1)(B).
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