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terminals, and other equipment and facilities used in its
trucking business (collectively, the trucking business
instrumentalities and tools). Transp. Labor Contract/Leasing,
Inc. & Subs. v. Commissioner, 123 T.C. at 167. The Court also
found in Transport Labor I that “TLC was a driver-leasing company
that leased one or more truck drivers to small and mid-sized
independent trucking companies which used such truck drivers to
transport goods and merchandise.” Id. at 156. TLC was in the
business of leasing driver-employees, and not in the trucking
business, and each trucking company client was in the trucking
business.
Each trucking company client’s owning or leasing the
trucking business instrumentalities and tools for such client’s
trucking business did not evidence that such trucking company
client was the employer of each driver-employee TLC leased to
such trucking company client. Such trucking company client
needed to own or lease the trucking business instrumentalities
and tools in order to conduct its trucking business, but could
have procured the services of truck drivers to use in that
business through other arrangements, e.g., by leasing them from a
person engaged in the driver-leasing business. Id. at 190, 194.
In contrast, TLC’s failure to provide the trucking business
instrumentalities and tools did not evidence that the driver-
employees were not its employees because such instrumentalities
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