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4 years had passed since petitioner left Victory Motors. The
Court has not been persuaded that the relationship between
petitioner and Victory Motors continued to exist beyond 2001.
The Court, accordingly, concludes that, at the time petitioner
left Victory Motors in approximately March 2001, both he and
Victory Motors considered the arrangement concluded, and,
accordingly, both parties considered the $13,500 as compensation
for petitioner’s services that year. The $13,500, therefore,
constitutes gross income and was includable in petitioner’s
income for 2001.
Petitioner also contends that Victory Motors withheld income
taxes on his commissions, and those withholdings were never
remitted to the IRS. The Court rejects that argument. The Form
1099-MISC offered into evidence does not show any income taxes
withheld. Moreover, copies of the checks for the payments to
petitioner were offered in evidence, and those checks total
precisely $13,500. There are no notational references on the
checks of income tax withholdings. This Court noted in Anderson
v. Commissioner, T.C. Memo. 2003-112, that, whether the taxpayer
was self-employed or an employee, “the fact remains that nothing
was withheld from what they paid him”, and held that the gross
amounts received by the taxpayer were subject to tax in their
entirety, with no credit for withholdings. Section 3509(d)(1)
specifically provides that the employee’s liability for income
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