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(2) Generally such relationship exists when the
person for whom services are performed has the right to
control and direct the individual who performs the
services, not only as to the result to be accomplished
by the work but also as to the details and means by
which that result is accomplished. That is, an employee
is subject to the will and control of the employer not
only as to what shall be done but how it shall be done.
In this connection, it is not necessary that the
employer actually direct or control the manner in which
the services are performed; it is sufficient if he has
the right to do so. The right to discharge is also an
important factor indicating that the person possessing
that right is an employer. Other factors
characteristic of an employer, but not necessarily
present in every case, are the furnishing of tools and
the furnishing of a place to work, to the individual
who performs the services. In general, if an
individual is subject to the control or direction of
another merely as to the result to be accomplished by
the work and not as to the means and methods for
accomplishing the result, he is an independent
contractor. * * *
We have held that even though the determination of employee
status is to be made by common law concepts, a realistic
interpretation should be adopted, and doubtful questions should
be resolved in favor of employment. Ewens & Miller, Inc. v.
Commissioner, 117 T.C. 263, 269 (2001).
Section 530 of the Revenue Act of 1978 (section 530)
provides relief from employment tax liability. Pub. L. 95-600,
92 Stat. 2885 (as amended). A taxpayer is entitled to relief
under section 530 if it demonstrates: (1) It did not treat an
individual as an employee for employment tax purposes for any
period, sec. 530(a)(1); (2) it filed all required Federal tax
returns consistent with its treatment of the individual, id.; and
(3) it had “a reasonable basis for not treating an individual as
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