William H. Mansel, Jr. and Angela W. Mansel - Page 6

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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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