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on respondent. We must decide whether the income that petitioner
received was reportable as gross receipts on Schedules C, or
whether the amounts are reportable as wages or salary on Form
1040.
The term “employee” is not defined in the Internal Revenue
Code for purposes of this income tax issue. Under these
circumstances, we apply common law rules to determine whether an
individual is an employee. Nationwide Mut. Ins. Co. v. Darden,
503 U.S. 318, 323-325 (1992); Weber v. Commissioner, 103 T.C.
378, 386 (1994), affd. 60 F.3d 1104 (4th Cir. 1995). Whether an
individual is a common law employee is a question of fact.
Profl. & Executive Leasing, Inc. v. Commissioner, 862 F.2d 751,
753 (9th Cir. 1988), affg. 89 T.C. 225 (1987); Simpson v.
Commissioner, 64 T.C. 974, 984 (1975). Among the relevant
factors in determining the nature of an employment relationship
are the following: (1) The degree of control exercised by the
principal over the details of the work; (2) the taxpayer’s
investment in the facilities used in the work; (3) the taxpayer’s
opportunity for profit or loss; (4) the permanency of the
relationship between the parties; (5) the principal’s right of
discharge; (6) whether the work performed is an integral part of
the principal’s business; (7) what relationship the parties
believe they are creating; and (8) the provision of employee
benefits. NLRB v. United Ins. Co., 390 U.S. 254, 258 (1968);
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