Medical Emergency Care Associates, S.C., An Illinois Corporation - Page 13

                                       - 13 -                                         
          was not made or if the required filing was made on a basis not              
          consistent with treatment of the individual as not being an                 
          employee.  As respondent acknowledges, petitioner filed all                 
          required returns for 1996 on a basis consistent with the                    
          treatment of the reclassified physicians as not being employees.            
          But there is nothing in the language of section 530(a)(1)(B) that           
          requires timeliness along with consistent filing.                           
               The unreality of respondent’s approach is illustrated by the           
          following colloquy that took place at trial:                                
                    THE COURT:  Suppose a taxpayer is required to file                
               the 1096 and the 1099s and the office burns down two                   
               weeks before the due date and the taxpayer writes a                    
               letter to the--well, I don’t know who, but somebody in                 
               the IRS and says, Look, our office burned down and our                 
               records are destroyed; we need some additional time.                   
               You’re not saying that the statute would preclude the                  
               Government from granting an extension of time, are you?                
                    MS. GROBE:  Yes, Your Honor.  I am.                               
                         *    *    *    *    *    *    *                              
                    This is a relief section.  They still have the                    
               ability to come in and argue that these workers are not                
               independent contractors--rather, are not employees;                    
               they are independent contractors.                                      
               The “relief” proposed by respondent’s counsel presents                 
          precisely the situation that section 530 was enacted to avoid.              
          In the case before us respondent has proposed a deficiency in the           
          amount of $256,628.61, to dispute which, under respondent’s                 
          theory, petitioner would be required to prove the status of each            

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011