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required little supervision. See Day v. Commissioner, T.C. Memo.
2000-375. This factor indicates petitioner exercised control
over the drivers’ activities consistent with an employer-employee
relationship. See id.
B. Investment in Facilities
The fact that a worker provides his or her own tools
generally indicates a nonemployee status. Ewens & Miller, Inc.
v. Commissioner, supra at 271.
The drivers incurred some cost for tools and maintaining
their licenses.20 However, these costs were insignificant when
compared to petitioner’s substantial investment to acquire and
maintain the fleet of approximately 15 trucks. The drivers did
not pay any of the costs of operating the trucks or transporting
the freight. The agreement stated petitioner alone was
responsible for all maintenance of its equipment, all fuel, oil,
tolls,21 permits, and road fuel taxes incurred by the drivers on
dispatched trips while in petitioner’s trucks.
The relatively minor investment by the drivers and the
substantial investment by petitioner support an employer-employee
relationship.
20 The drivers provided their own hand tools and, at their
option, could provide ratchet binders to use rather than the snap
binders that were provided with the trucks.
21 Although the agreement stated petitioner would cover
those costs, the parties stipulated that the drivers were
actually required to cover the costs of paying tolls.
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