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We first consider the issue presented and argued by the
parties of whether petitioner is an employee or is self-employed.
This Court considers various factors to determine whether
there is an employment relationship between the parties.
Relevant factors include: (1) The degree of control exercised by
the principal over the details of the work; (2) which party
invests in the facilities used in the work; (3) the opportunity
of the individual for profit or loss; (4) whether or not the
principal has the right to discharge the individual; (5) whether
the work is part of the principal’s regular business; (6) the
permanency of the relationship; and (7) the relationship the
parties believe they are creating. No one factor dictates the
outcome. Rather, we must look at all the facts and circumstances
of each case. Weber v. Commissioner, 103 T.C. 378, 379 (1994),
affd. 60 F.3d 1104 (4th Cir. 1995).
The “right-to-control” test is a crucial test to determine
the nature of a working relationship. The degree of control is
of great importance, though not conclusive. Accordingly, we must
examine not only the control exercised by an alleged employer,
but also the degree to which the alleged employer may intervene
to impose control. For an employer to retain the requisite
control over the details of an employee’s work, the employer need
not stand over the employee and direct every move made by that
employee. Also, the degree of control necessary to find employee
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