- 12 -
undocumented testimony. Shea v. Commissioner, 112 T.C. 183, 189
(1999).
Self-Employment Tax
In addition to the income tax imposed by section 1, section
1401(a) imposes a tax upon a taxpayer’s “self-employment
income.” Section 1402(b) defines “self-employment income” as
“net earnings from self-employment.” It is well established
that earnings derived from work as an independent contractor are
“self-employment income” subject to the self-employment tax.
Jackson v. Commissioner, 108 T.C. 130, 133-134 (1997); Turnidge
v. Commissioner, T.C. Memo. 2003-169.
Petitioner contends that he performed services for New
Dimensions during the disputed pay period as an employee rather
than an independent contractor and is not liable for a self-
employment tax under section 1401(a).
Whether an individual is an employee or an independent
contractor is a question of fact. Secs. 3101, 3121(d)(2). This
Court has listed seven factors that should be considered in
determining whether an individual is an employee: (1) The
degree of control exercised over the details of the work; (2)
the individual’s investment in the work facilities; (3) the
individual’s opportunity for profit or loss; (4) whether the
work is part of the principal’s regular business; (5) the
principal’s right to discharge the individual; (6) the
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