Matthew Hudack and Kristen Hudack - Page 14

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          common law test if his risk of loss was negligible.  Lewis v.               
          Commissioner, T.C. Memo. 1993-635; Radovich v. Commissioner, T.C.           
          Memo. 1954-220.  Moreover, the risk that he would not receive any           
          commissions because of low sales performance is common to both              
          employees and statutory employees.                                          
               Other than his computer, fax machine, cellular phone, and              
          business expenses that exceeded his annual reimbursement                    
          allocation, petitioner did not have any capital investments or              
          bona fide liability for expenses (such as salary payments to                
          unrelated employees) in his sales activities such that he would             
          be subject to a real risk of economic loss.                                 
               This factor supports a finding that petitioner was an                  
          employee of Manulife.                                                       
               4.  Permanency of Relationship                                         
               Since becoming a licensed life insurance salesman in 1986,             
          petitioner has worked for Manulife from 1986 to June 1990 and               
          again from June 1993 to at least the date of trial.  Moreover,              
          under the agreement, petitioner was hired to work for an                    
          indefinite period of time.                                                  
               This factor supports a finding that petitioner was an                  
          employee of Manulife.                                                       
               5.  Principal’s Right To Discharge                                     
               The relationship between petitioner and Manulife was                   
          terminable at the will of either party without any further                  






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