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Determination of Worker Classification, dated July 28, 2004.1
Respondent determined that, for purposes of Federal employment
taxes, petitioner’s workers were employees and petitioner owed
total employment taxes under subtitle C of the Internal Revenue
Code for the years 1996, 1997, and 1998 of $359,414.28 and
additions to tax under section 6651(f) of $269,560.71. The
issues for decision are:
(1) Whether the period of limitations for respondent’s
reclassification of individuals as petitioner’s employees has
passed. We hold that the period of limitations remains open;
(2) whether the workers listed in the notice of
determination were properly classified as employees for purposes
of Federal employment taxes. We hold that the identified
individuals were petitioner’s employees; and
(3) whether petitioner is liable for additions to tax for
the years 1996, 1997, and 1998 pursuant to section 6651(f). We
hold that petitioner is not so liable.
FINDINGS OF FACT
Some of the facts have been stipulated, and the stipulated
facts are incorporated in our findings by this reference. Orion
Contracting Trust (petitioner) is a trust organized under the
1Unless otherwise indicated, all section references are to
the Internal Revenue Code, as amended, and all Rule references
are to the Tax Court Rules of Practice and Procedure.
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