Melinda D. Rivera - Page 14

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               F.   Integral Part of Business                                         
               Peerless and Big Train are in the business of selling their            
          products.  Sales representatives, such as petitioner, are their             
          key connection with their customers.  This factor supports a                
          finding that petitioner was an employee of Peerless and Big                 
          Train.  See Lewis v. Commissioner, supra.                                   
               G.   Relationship Parties Believe They Created                         
               Petitioner believes that she was a statutory employee.  The            
          statutory employee boxes on the Forms W-2 from Peerless and Big             
          Train were not checked.  Further, Peerless and Big Train withheld           
          applicable payroll taxes and did not issue Forms 1099 to                    
               H.   Employee Benefits                                                 
               Peerless offered petitioner medical, dental, and vision                
          benefits upon completion of her 90-day probationary period.                 
          There is no evidence in the record as to whether petitioner                 
          received any benefits from Big Train.                                       
               Considering the record and weighing all the factors, the               
          Court concludes that petitioner was a common law employee under             
          section 3121(d)(2) and, therefore, was not a statutory employee             
          under section 3121(d)(3).  Petitioner is not entitled to report             
          gross income and deduct expenses on Schedule C.  Respondent is              
          sustained on this issue.                                                    

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Last modified: May 25, 2011