Juan Ramirez - Page 11

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                    (2) Statutory standards providing one method of                   
               satisfying the requirements of paragraph (1).-- For                    
               purposes of paragraph (1), a taxpayer shall in any case                
               be treated as having a reasonable basis for not                        
               treating an individual as an employee for a period if                  
               the taxpayer’s treatment of such individual for such                   
               period was in reasonable reliance on any of the                        
                    (A) judicial precedent, published rulings,                        
               technical advice with respect to the taxpayer, or a                    
               letter ruling to the taxpayer;                                         
                    (B) a past Internal Revenue Service audit of the                  
               taxpayer in which there was no assessment attributable                 
               to the treatment (for employment tax purposes) of the                  
               individuals holding positions substantially similar to                 
               the position held by this individual; or                               
                    (C) long-standing recognized practice of a                        
               significant segment of the industry in which such                      
               individual was engaged.                                                
          Respondent does not dispute that petitioner meets the first two             
          requirements of Revenue Act section 530(a)(1).  Petitioner has              
          never treated any of his workers as employees for Federal                   
          employment tax purposes, and he has timely filed all required               
          returns for the periods in issue and for prior periods on a basis           
          consistent with his treatment of the workers as independent                 
          contractors.  However, respondent argues that petitioner did not            
          have a reasonable basis for treating his workers as independent             
          contractors instead of employees, and thus fails the third                  
          element of the Revenue Act section 530(a)(1) test.                          
               Under Revenue Act section 530(e)(4), the burden of proof is            
          placed on respondent if, in addition to cooperating with                    
          reasonable requests from respondent, petitioner establishes a               

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