- 7 -
Moreover, the Court notes that the type of work in which
independent contractors engage at ACC is similar to the type of
work that petitioner did at STC. The Court, based on all of the
evidence presented by petitioner and respondent, concludes that
petitioner was an independent contractor for ACC in 2003.
Section 61(a) defines gross income for purposes of
calculating taxable income as “all income from whatever source
derived”. Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 429-
431 (1955).
Section 1401 imposes a percentage tax on self-employment
income of every individual. See Jackson v. Commissioner, 108
T.C. 130 (1997). Self-employment income is defined as “the net
earnings from self-employment derived by an individual * * *
during any taxable year”. Sec. 1402(b). The term “net earnings
from self-employment” is defined as “the gross income derived by
an individual from any trade or business carried on by such
individual, less the deductions * * * which are attributable to
such trade or business”. Sec. 1402(a).
Petitioner was self-employed as an independent contractor in
2003. Accordingly, petitioner is liable for self-employment tax
under section 1401 on the unreported nonemployee compensation
received from ACC in 2003.
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011