- 2 -
(1) Whether Kenneth K. Sadanaga (Sadanaga) was an employee of
petitioner for Federal employment tax purposes during 1997
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
Sadanaga has been a licensed veterinarian since 1985. 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. Petitioner was incorporated in Pennsylvania on
May 22, 1991, and has at all relevant times operated as an S
corporation. Petitioner’s principal place of business was
located in Pennsylvania, at the address of Sadanaga’s personal
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