- 20 - company that is on the verge of bankruptcy. We believe it is fair to characterize the parties’ agreement to change the petitioner’s status from employee to independent contractor as a temporary arrangement resulting from the company’s financial condition. We conclude that this factor favors a finding that petitioner was an independent contractor. After a careful review of the record as a whole, we conclude that, as petitioner and New Dimensions intended, petitioner performed services as an independent contractor during the disputed pay period. Accordingly, we hold that the earnings in dispute are “net earnings from self-employment” for purposes of section 1402(a), subject to the tax imposed on “self-employment income” under section 1401(a). To reflect the foregoing, Decision will be entered under Rule 155.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Last modified: May 25, 2011