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We are unable to discern in petitioners' arguments any other
basis for attributing error to respondent's determination that
Mrs. Doxtator's judicial officer compensation is subject to self-
employment tax. Moreover, several other factors support the
determination. Mrs. Doxtator controlled her own schedule. She
had discretion to hear as many or as few cases as she chose. She
was paid a flat stipend per case heard, regardless of its
duration. She was required to provide her own transportation to
the various hearing sites. Her decisions were binding on the
Tribe. In sum, the manner in which she performed her duties as a
judicial officer supports the conclusion that she was an
independent contractor, and the Tribe treated her as such,
issuing Forms 1099 with respect to the amounts paid to her for
each year in issue. We accordingly sustain respondent's
determination that Mrs. Doxtator's compensation as a judicial
officer in 1997, 1999, and 2000 is subject to self-employment
taxes.
Native American Finance
Respondent disallowed the expenses petitioners claimed on
Schedules C for 1997 and 2000 on the grounds that Native American
Finance was not a trade or business for purposes of section
162(a).
Section 162(a) allows deductions for ordinary and necessary
expenses paid or incurred in carrying on any trade or business.
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