Veterinary Surgical Consultants, P.C. - Page 9




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               Regulations promulgated under section 3121(d) clarify the              
          scope of the inclusion in paragraph (1) for corporate officers,             
          as follows:                                                                 
               Generally, an officer of a corporation is an employee                  
               of the corporation.  However, an officer of a                          
               corporation who as such does not perform any services                  
               or performs only minor services and who neither                        
               receives nor is entitled to receive, directly or                       
               indirectly, any remuneration is considered not to be an                
               employee of the corporation. * * * [Sec. 31.3121(d)-                   
               1(b), Employment Tax Regs.]                                            
          Identical language is also included in regulations promulgated              
          under section 3306.  Sec. 31.3306(i)-1(e), Employment Tax Regs.             
               B.  Section 530 of the Revenue Act of 1978                             
               Section 530 operates in enumerated circumstances to afford             
          relief from employment tax liability, notwithstanding the actual            
          relationship between the taxpayer and the individual performing             
          services.  The statute provides, in part:                                   
               SEC. 530.  CONTROVERSIES INVOLVING WHETHER INDIVIDUALS                 
               ARE EMPLOYEES FOR PURPOSES OF THE EMPLOYMENT TAXES.                    
                    (a) Termination of Certain Employment Tax                         
               Liability.--                                                           
                    (1) In general.--If--                                             
                    (A) for purposes of employment taxes, the taxpayer                
               did not treat an individual as an employee for any                     
               period, and                                                            
                    (B) in the case of periods after December 31,                     
               1978, all Federal tax returns (including information                   
               returns) required to be filed by the taxpayer with                     
               respect to such individual for such period are filed on                
               a basis consistent with the taxpayer’s treatment of                    
               such individual as not being an employee,                              






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