3
petitioner filed his 2000 Federal income tax return, paying self-
employment tax on the income he received that year from
Compliance, petitioner believed that he was actually an employee
rather than an independent contractor. Thus, in 2001, petitioner
contacted the Austin Customer Service Center and submitted Form
SS-8, Determination of Worker Status for Purposes of Federal
Employment Taxes and Income Tax Withholding, which requested a
determination of his employment status at Compliance for Federal
employment tax purposes.
Petitioner received taxable wages of $17,5882 from
Compliance for work performed in 2001. Compliance believed that
petitioner was an independent contractor, and accordingly,
withheld no Federal income tax from his paycheck. Although
petitioner was aware that Compliance considered him an
independent contractor, he did not pay any estimated tax payments
in 2001. In summary, Compliance withheld no Federal income tax
from petitioner’s 2001 wages, and petitioner did not make any
estimated tax payments in 2001 with respect to his income from
Compliance.
On May 10, 2002, respondent issued a determination letter
that stated petitioner was an employee, and not an independent
2 Petitioner received total wages of $18,423 from Compliance
in 2001; however, he claimed that a portion of that amount was
received for business expense reimbursement. Respondent concedes
that $835 should be subtracted from the income reported to
respondent by Compliance.
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