- 18 - Automated Typesetting, Inc. v. United States, 527 F. Supp. 515 (E.D. Wis. 1981), in support of the premise that petitioner reasonably looked to common law control concepts in classifying Sadanaga. For the reasons previously discussed, Tex. Carbonate Co. v. Phinney, supra, does not afford a reasonable basis for disregard of the explicit rules of section 3121(d)(1) and sections 31.3121(d)-1(b) and 31.3306(i)-1(e), Employment Tax Regs. In affirming our opinion in petitioner’s prior case, the Court of Appeals ruled: Texas Carbonate is not authoritative and it does not support the taxpayers’ argument * * *. Thus, any reliance upon Texas Carbonate * * * was unreasonable, particularly in light of the subsequent decisions in Radtke * * * [Joseph Radtke, S.C. v. United States, 895 F.2d 1196, 1197-1198 (7th Cir. 1990)], and Spicer Accounting * * * [Spicer Accounting, Inc. v. United States, 918 F.2d 90, 94-95 (9th Cir. 1990)]. Indeed, Spicer Accounting rejected the taxpayer’s argument that it had a reasonable basis for not treating its officer as an employee under Section 530 and should not be held liable. The court reasoned that Mr. Spicer was “for all practical purposes, the central worker for the taxpayer” and it declared that a “corporation’s sole full-time worker must be treated as an employee.” 918 F.2d at 95. [Yeagle Drywall Co. v. Commissioner, 54 Fed. Appx. at 104.] Equally unavailing in this regard is Automated Typesetting, Inc. v. United States, supra. The District Court in that case simply evaluated the employment relationship of the involved individuals both through a common law analysis and through application of the provisions relating to corporate officers.Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
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