Peter F. & Maureen L. Speltz - Page 21

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               We also find Haeder v. Commissioner, supra, which respondent           
          cited, distinguishable.  In Haeder, the Court found no employer-            
          employee relationship existed between two spouses, where one                
          spouse had a legal practice at home and the other spouse assisted           
          with secretarial, clerical, bookkeeping, and cleaning services.             
          Haeder v. Commissioner, T.C. Memo. 2001-7.  In Haeder, the                  
          taxpayer-attorney admitted that the law practice had few clients            
          during the years at issue and required little assistance.                   
          Moreover, only the taxpayer-attorney testified, and the Court               
          found that testimony vague, generalized, and conclusory.  Nor did           
          the taxpayers document the spouse’s purported work activities or            
          the time spent working.  Id.                                                
               Our case is therefore distinguishable from Haeder.  While              
          the record in Haeder was “devoid” of credible evidence that an              
          employer-employee relationship existed, petitioners submitted               
          credible evidence and testimony concerning the nature of Mr.                
          Speltz’s activities and Mrs. Speltz’s direction of those                    
          activities.                                                                 
               Finally, we have applied close scrutiny to the facts and               
          find that the daycare payments were made on account of the                  
          employer-employee relationship and not on account of the family             
          relationship.  See Denman v. Commissioner, 48 T.C. 439 (1967);              
          Haeder v. Commissioner, supra; Shelley v. Commissioner, T.C.                
          Memo. 1994-432; Martens v. Commissioner, T.C. Memo. 1990-42.  Mr.           






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