Ronald E. Byers - Page 11




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          Kuntz v. Commissioner, T.C. Memo. 1962-98; see also Ravelo                  
          Escandon v. Commissioner, T.C. Memo. 2007-128 (an employer’s                
          misclassification of an employee as an independent contractor               
          does not reduce or discharge the employee’s liability to pay                
          Federal income taxes).  Further, there is no withholding                    
          requirement under section 3402 for payors of independent                    
          contractors.                                                                
               Petitioner argues that amounts ECI deducted from                       
          petitioner’s gross earnings as petitioner’s truck lease payments            
          and remitted to CCI should be recharacterized as Federal income             
          tax withholdings and that respondent should credit the funds                
          remitted by ECI to CCI against petitioner’s Federal income and              
          self-employment taxes for the years in issue.                               
               Set forth below for each year in issue is a comparison of              
          petitioner’s truck lease payments remitted to CCI and the tax               
          deficiencies respondent determined against petitioner:                      

                                                        Tax                           
                     Year   Truck Lease Payments   Deficiencies                       
                     1999          $25,900           $ 7,921                          
                     2000          52,911            25,179                           
                     2001          46,029            13,601                           
                     2002          45,961            11,571                           

               Based on the above, petitioner argues that he owes no tax              
          deficiencies and that respondent owes him a refund of overpaid              
          Federal taxes for each year in the amount of the above positive             






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