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issues that would provide for relief from the collec-
tion action proposed. No alternative security, to that
afforded by the Notice of Federal Tax Lien, was of-
fered. It is the recommendation of Appeals that the
proposed levy action and the filing of the Notice of
Federal Tax Lien be sustained.
Brief Background
You have been engaged in a dispute with the Service
with respect to the employment status of Mr. Anderson
for a number of years. This matter involves * * * 1998
* * *. It relates to your position that Mr. Anderson
is an employee and that the employer should have with-
held federal income taxes from his wages. Your conten-
tion is that Mr. Anderson is an employee and that all
taxes are the responsibility of his employer. Previous
tax years have been subject to Examination, Collection,
Taxpayer Advocate and Appeals consideration. They are
currently at various stages of the judicial process.
At the hearing you indicated that Mr. Anderson is a
fishing boat captain. In 1998 * * * he received his
compensation from work performed on a fishing vessel.
No federal income taxes were actually withheld in the
years in question.
The issue of withholding tax has been decided by Church
810 F.2nd19 1987 87-1 USTC 9145. The United States Tax
Court ruled, and the 2nd Circuit Court of Appeals af-
firmed, that failure of an employer to withhold the tax
did not lessen the taxpayer’s obligation to report and
pay tax on the income received. Other than your posi-
tion that the employer should be liable for the with-
holding tax no other issues were raised. You declined
to discuss alternatives to the Lien and Levy. Accord-
ingly, the determination is based upon a review of the
available information. The collection action should be
sustained.
Discussion and Analysis
Verification that Law and Procedures were followed
Under IRC section 6330 you are entitled in a Collection
Due Process matter to raise the issue of liability if
you did not otherwise have an opportunity to so. In
this particular case no Statutory Notice of Deficiency
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