- 6 - of taxes due and owing are as set forth in the notice of determination. Conversely, if the Court decides that Murdock should not be classified as an employee for any of the periods in issue, the parties agree that petitioner owes no employment taxes. ULTIMATE FINDINGS OF FACT Murdock, as president of petitioner, performed more than minor services and received remuneration therefor. Petitioner did not have a reasonable basis for failing to treat Murdock as an employee during the years in issue. OPINION I. Statutory and Regulatory Provisions A. Subtitle C of the Internal Revenue Code Subtitle C of the Internal Revenue Code governs payment of employment taxes. In particular, sections 3111 and 3301 impose taxes on employers under FICA (pertaining to Social Security) and FUTA (pertaining to unemployment), respectively, based on wages paid to employees. The term “wages” as used in these statutes generally encompasses “all remuneration for employment”. Secs. 3121(a), 3306(b). “Employee” is defined for purposes of FICA taxes in section 3121(d), and, with modifications not germane here, section 3306(i) makes this definition applicable for purposes of FUTA taxes as well. Section 3121(d) provides:Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011