- 10 - aspects of their working relationships with petitioner generally reveals that their practices and expectations with regard to their jobs were those of employees, not of independent contractors. On review of the entire record and weighing of the factors discussed above, we conclude that petitioner’s workers were employees during 2003. II. Revenue Act Section 530 Relief Notwithstanding the existence of an employer-employee relationship, Revenue Act section 530 operates in enumerated circumstances to afford relief from employment tax liability. Revenue Act section 530 provides in relevant part: SEC. 530. CONTROVERSIES INVOLVING WHETHER INDIVIDUALS ARE EMPLOYEES FOR PURPOSES OF THE EMPLOYMENT TAXES. (a) Termination of Certain Employment Tax Liability.-- (1) In general.--If-- (A) for purposes of employment taxes, the taxpayer did not treat an individual as an employee for any period, and (B) in the case of periods after December 31, 1978, all Federal tax returns (including information returns) required to be filed by the taxpayer with respect to such individual for such period are filed on a basis consistent with the taxpayer’s treatment of such individual as not being an employee, then, for purposes of applying such taxes for such period with respect to the taxpayer, the individual shall be deemed not to be an employee unless the taxpayer had no reasonable basis for not treating such individual as an employee.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: March 27, 2008