Michael D. and Christine R. Alexander - Page 12

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          information returns8 with respect to the child; (2) paying the              
          child a flat amount determined at the beginning of the year that            
          is not based on the services actually performed; (3) a lack of              
          correlation between the dates and amounts of payments and the               
          hours allegedly worked by the child; (4) failing to maintain                
          adequate records of the child’s hours worked and amounts earned;            
          and (5) compensating the child for services which are in the                
          nature of routine family chores.  See Denman v. Commissioner,               
          supra; O’Connor v. Commissioner, supra; Hable v. Commissioner,              
          T.C. Memo. 1984-485; Furmanski v. Commissioner, T.C. Memo.                  
               There is no indication that petitioners paid employment                
          taxes on the $4,000 they paid Steven.  Nor is there any                     
          indication petitioners filed a Form 940, 941, or W-2.  These                
          facts tend to negate petitioners’ contentions that the payments             

          purposes of FUTA, employment does not include service performed             
          by a child under the age of 21 in the employ of his father or               
          mother.  Sec. 3306(c)(5).  Because Steven was 21 years old when             
          he performed services for the seamstress business, secs.                    
          3121(b)(3)(A) and 3306(c)(5) are inapplicable.                              
               8 The return of the Federal unemployment tax is required to            
          be filed on Form 940.  Sec. 601.401(a)(3), Statement of                     
          Procedural Rules.  All other returns of Federal employment taxes            
          generally are required to be filed on Form 941.  Id.  In                    
          addition, wages paid to an employee are required to be reported             
          on Form W-2.  Sec. 1.6041-2(a)(1), Income Tax Regs.                         

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