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Miller, Inc. v. Commissioner, 117 T.C. 263, 273 (2001); Day v.
Commissioner, T.C. Memo. 2000-375. Usually, the right to
discharge a worker, and the worker’s right to quit, at any time
indicates an employer-employee relationship. See United States
v. W.M. Webb, Inc., 397 U.S. 179, 193 (1970); Breaux & Daigle,
Inc. v. United States, 900 F.2d at 53; Air Terminal Cab, Inc. v.
United States, 478 F.2d at 581. The right to discharge without
cause is a factor that should be considered in determining
whether a person is an employee. Sec. Storage & Van Co. v.
United States, 528 F.2d 1166, 1167 (4th Cir. 1975).
Both petitioner and the State Department had the right to
terminate the personal service contracts without cause with 30
days’ notice. The State Department could terminate petitioner’s
services for cause only by written notice from the contracting
officer to petitioner. The State Department could not discharge
petitioner at any time without notice or explanation. This
factor favors petitioner.
7. Permanency of the Relationship
A transitory work relationship may point toward independent
contractor status. Herman v. Express Sixty-Minutes Delivery
Serv., Inc., 161 F.3d 299, 305 (5th Cir. 1998). Petitioner
performed work under the personal service contracts for a little
over 1 year. In November 1999, the State Department released
petitioner from the second personal service contract and hired
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