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90-day probationary period. The letter also states that
petitioner would be reimbursed at 26 cents per mile for mileage
driven and documented. Peerless required that it be named as an
additional insured on petitioner's auto policy and that
petitioner provide them with certificates of insurance on a
regular basis. Petitioner's monthly insurance billing statements
did not reflect Peerless as an insured.
Discussion
The sole adjustment determined in the notice of deficiency
is that petitioner is liable for self-employment tax and entitled
to the corresponding deduction. The issues regarding
petitioner's status as a statutory employee and her entitlement
to claim deductions on Schedule C were raised in her petition
herein and were argued by her at trial. Respondent did not file
an answer, and his argument that petitioner is not entitled to
deduct business expenses on either Schedule C or Schedule A
because of lack of substantiation was raised for the first time
in his trial memoranda.2
The Court finds on the basis of the entire record that
petitioner received adequate notice, and was not surprised or
unduly prejudiced by respondent's position. Accordingly, the
Court deems the issues raised and tried by consent of the parties
2This case was set for trial twice. Respondent raised the
issue in both trial memoranda.
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