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consider. See Maggie Mgmt. Co. v. Commissioner, 108 T.C. at 443;
Powers v. Commissioner, 100 T.C. 457, 471 (1993), affd. in part,
revd. in part and remanded on another issue 43 F.3d 172 (5th Cir.
1995). On this point, it was the Appeals officer’s review of the
facts that led him to conclude that “the common law factors do
not support a finding that the taxpayer had the right to control
and direct the work of the instructors as to the details and
means by which they accomplished their work.”
The facts do not support respondent’s position that the
examining agent had insufficient information to accept
petitioner’s worker classification or that the facts indicated
petitioner’s worker classification was incorrect. The
examining agent determined that petitioner’s dance instructors
were employees after considering three factors--(1) behavioral
control, (2) financial control, and (3) the relationship of the
parties.4 The examining agent determined the behavioral control
4This Court generally considers seven factors in deciding
whether a worker is an independent contractor or a common law
employee. See, e.g., Ewens & Miller, Inc. v. Commissioner, 117
T.C. 263, 269 (2001); Profl. & Executive Leasing, Inc. v.
Commissioner, 89 T.C. 225, 233 (1987) (reviewing the following
factors to decide the existence of an employment relationship:
(1) The degree of control exercised over the details of the work;
(2) investment in the work facilities; (3) opportunity for profit
or loss; (4) whether the type of work is part of the principal's
regular business; (5) right to discharge; (6) permanency of the
relationship; and (7) the relationship the parties think they are
creating), affd. 862 F.2d 751 (9th Cir. 1988). The Appeals
officer’s review of this case relied on the 20 common law
factors. Rev. Rul. 87-41, 1987-1 C.B. 296. His analysis shows
that the 20 common law factors, when not condensed into only
(continued...)
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