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Lewis v. Commissioner, supra. Petitioner worked for TIG for
approximately 6 months in 2000. Petitioner was paid a
nonrecoverable draw in the amount of $5,000 for the first 4
months, and then $2,500 for the fifth and sixth months.
Thereafter, petitioner’s draw was recoverable against his sales
commission on a month-to-month basis. In 2000, petitioner was
entitled to a nonrecoverable draw for the entire period he
worked; therefore, petitioner’s risk of loss was negligible, if
not nil. The Court concludes that this factor weighs in favor of
an employer-employee relationship.
4. Right To Discharge
Employers typically have the power to terminate employees at
will. Ellison v. Commissioner, supra at 155. The employment
agreement provided that TIG could terminate petitioner at will
with or without cause or notice. Notably, TIG exercised its
termination right. Accordingly, the Court concludes that this
factor weighs in favor of an employer-employee relationship.
5. Integral Part of Business
Petitioner contends that he was not an integral part of
TIG’s business. Petitioner claims that TIG was a “diverse
company with separate divisions that sold” the following:
(1) Services, (2) computer hardware, (3) office furnishings,
(4) office supplies, (5) outside help-desk functions, and
(6) “Application Service Processing”. Petitioner further asserts
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