- 34 -
Contract/Leasing, Inc. & Subs. v. Commissioner, 123 T.C. at 193,
stated:
With respect to each driver-employee, for each payroll
period TLC was obligated to, and did, pay such driver-
employee his or her net wages and any per diem amounts
as well as the employer’s share of employment taxes,
withhold and pay the driver-employee’s share of
employment taxes, withhold and pay Federal and State
income taxes, make daily electronic funds transfers of
the appropriate amounts of such taxes to the IRS and
appropriate State agencies, and pay workers’
compensation insurance premiums.
The obligations to pay the employer’s share of employment
taxes, to withhold and to pay the employee’s share of employment
taxes, and to withhold and to pay Federal income tax with respect
to an employee’s wages are obligations generally imposed upon an
employer. Secs. 3102(a), 3111(a), 3301, 3402, 3403. TLC’s
undertaking and satisfying the obligations to withhold and to pay
FICA taxes,32 other employment taxes, and Federal income tax with
respect to each driver-employee’s wages evidenced that TLC was
the employer of each driver-employee. See Kirk v. Harter, 188
F.3d 1005, 1008 (8th Cir. 1999); Birchem v. Knights of Columbus,
116 F.3d 310, 313 (8th Cir. 1997); Wilde v. County of Kandiyohi,
15 F.3d 103, 105-106 (8th Cir. 1994).
In addition, with respect to petitioner’s assertion that TLC
was the employer of each driver-employee for all purposes except
the section 274(n)(1) limitation because TLC was what petitioner
32See Levine v. Commissioner, T.C. Memo. 2005-86.
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