- 7 - issue in this proceeding. The notice was based on a determination that Sadanaga was to be legally classified as an employee for purposes of Federal employment taxes and that petitioner was not entitled to relief from such classification pursuant to Section 530. Enclosed with the notice was a schedule setting forth petitioner’s liabilities for FICA and FUTA taxes. It is stipulated that, if the Court decides that Sadanaga is to be classified as an employee for Federal employment tax purposes for all periods in 1997 and 1998, the amounts of taxes due and owing are as set forth in the notice of determination. Conversely, if the Court decides that Sadanaga 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 Sadanaga, as president of petitioner, performed more than minor services and received remuneration therefor. Petitioner did not have a reasonable basis for failing to treat Sadanaga 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) andPage: 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