Veterinary Surgical Consultants, P.C. - Page 23




                                       - 23 -                                         
          It does not purport to override or interpret the definition of              
          “employee” in section 3121(d) and related regulations.  Hence,              
          Section 530(c)(2) does not render it rational for petitioner to             
          have ignored the statutory mandate regarding corporate officers             
          and to have taken a position that was not otherwise supported by            
          authority.  Petitioner also does not claim in actuality to have             
          relied on Section 530(c)(2) in deciding not to treat Sadanaga as            
          an employee in 1997 or 1998.  We conclude and have found as a               
          fact that petitioner did not have a reasonable basis for failing            
          to characterize Sadanaga as an employee.  Consequently, relief              
          from employment tax liability is not available to petitioner                
          under Section 530.                                                          
               Lastly, in connection with Section 530, petitioner raises a            
          due process argument.  This issue has never been properly pled by           
          petitioner.  Rather, petitioner mentioned due process in its                
          motion for leave to file an amended petition, did not allege a              
          due process violation in the amended petition itself, and argued            
          the matter only on brief.  Generally, issues not properly raised            
          prior to briefing will not be considered when to do so would                
          prevent the opposing party from presenting evidence that might              
          have been offered if the issue had been timely raised.  DiLeo v.            
          Commissioner, 96 T.C. 858, 891 (1991), affd. 959 F.2d 16 (2d Cir.           
          1992); Shelby U.S. Distribs., Inc. v. Commissioner, 71 T.C. 874,            
          885 (1979).  Here, however, even if we were to treat the due                






Page:  Previous  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  Next

Last modified: May 25, 2011