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are: (1) Whether John F. Ludlow (Ludlow) was an employee of
petitioner for Federal employment tax purposes during 1996
through 1998 and, if so, (2) whether petitioner is entitled to
relief under section 530 of the Revenue Act of 1978, Pub. L. 95-
600, 92 Stat. 2885, as amended (Section 530).
Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the years in issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure. For convenience, FICA and FUTA taxes are collectively
referred to as employment taxes.
FINDINGS OF FACT
Some of the facts were deemed stipulated pursuant to Rule
91(f); certain additional facts have been stipulated by the
parties. The stipulated facts are incorporated in our findings
by this reference.
Petitioner’s Organization and Operations
Ludlow has been in the business of providing hauling
services since 1973. He subsequently decided to incorporate his
business on account of the protections afforded by limited
liability, in that a corporation’s debts are generally not
assessed against individual shareholders, since the trucking
business involves a high degree of potential liability in the
event of an accident. Petitioner was incorporated in
Pennsylvania on March 9, 1989, and has at all relevant times
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