- 20 - that he bears the burden of proof on the statutory employee issue because it constitutes a new matter under Rule 142.16 In determining whether a worker is a common law employee or an independent contractor, the Court generally considers: (1) The degree of control exercised by the principal; (2) which party invests in work facilities used by the individual; (3) the opportunity of the individual for profit or loss; (4) whether the principal can discharge the individual; (5) whether the work is part of the principal’s regular business; (6) the permanency of the relationship; (7) the relationship the parties believed they were creating; and (8) the provision of employee benefits. See Ewens & Miller, Inc. v. Commissioner, supra at 270; Weber v. Commissioner, supra at 387; Profl. & Executive Leasing, Inc. v. Commissioner, supra at 232; Simpson v. Commissioner, 64 T.C. 974, 984-985 (1975); Cole v. Commissioner, T.C. Memo. 2006-44. All of the facts and circumstances of each case are considered, and no single factor is dispositive. Ewens & Miller, Inc. v. Commissioner, supra at 270. 1. Degree of Control The right of the principal to exercise control over the agent, whether or not the principal does so, is the “crucial 16Respondent conceded that he bears the burden of proof pursuant to Rule 142 because “The issue of Petitioner’s status as a statutory employee of TIG is a new matter since the Notice of Deficiency frames the issue of Petitioner’s Schedule C expenses from the perspective of substantiation.”Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: November 10, 2007