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Additionally, Metamor and Robert Half withheld income tax and
applicable payroll taxes and did not issue Forms 1099 to
petitioner.
Metamor’s letter terminating petitioner referred to vacation
and medical benefits and right to reimbursement for approved
expenses.
None of the relevant factors discussed above supports
petitioner’s position. Considering all of the facts and
circumstances, we conclude that petitioner was a common law
employee of both Metamor and Robert Half under section 3121(d)(2)
and was not a statutory employee under section 3121(d)(3). See
Ewens & Miller, Inc. v. Commissioner, 117 T.C. 263 (2001).
Therefore, petitioner is not entitled to report his income and
expenses on Schedule C.
Additional Expenses
A common law employee may report business expenses on
Schedule A, subject to the limitations under section 67. See
Lickiss v. Commissioner, T.C. Memo. 1994-103. An individual
performing services as an employee may deduct expenses incurred
in the performance of those services as miscellaneous itemized
deductions on Schedule A only to the extent such expenses exceed
2 percent of the individual's adjusted gross income. Secs.
63(a), (d), 67(a) and (b).
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