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a. Degree of Control
The “degree of control” or “right to control” test is the
most important factor to consider in deciding the nature of a
working relationship. Matthews v. Commissioner, 92 T.C. 351, 361
(1989), affd. 907 F.2d 1173 (D.C. Cir. 1990). Consideration is
given not only to the control exercised by an alleged employer,
but also to the degree to which the alleged employer may
intervene to impose control. Radio City Music Hall Corp. v.
Commissioner, 135 F.2d 715, 717 (2d Cir. 1943); Weber v.
Commissioner, 103 T.C. at 387.
Before January 13, 2001, petitioner was a member of CTI’s
strategic management team, she was expected to work at the office
full time, and she was required to be readily available to work
for CTI. Beginning on January 13, 2001, as a result of the
consulting agreement, petitioner was no longer required to work
(nor did she work) as many hours as she did beforehand, she no
longer had to be available to CTI at all times, and she was
allowed to conduct her work for CTI at any location she pleased.
In addition, in contrast with her work for CTI before January 13,
2001, petitioner afterwards did not receive written evaluations,
she had the right to work for other companies, and she had the
right to subcontract CTI business to third parties. Although
petitioner’s job was substantially similar to the one she did
before she began working for CTI pursuant to the consulting
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Last modified: November 10, 2007