Orion Contracting Trust, Kevin Peter Carmel, General Manager - Page 2

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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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