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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:
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