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request an extension to file her return.
On October 6, 2005, respondent issued a notice of deficiency
and determined a self-employment tax deficiency of $4,866 and a
section 6651(a)(1) addition to tax of $1,435. Petitioner paid
the tax deficiency and the addition to tax. On January 4, 2006,
while residing in Los Angeles, California, petitioner filed her
petition with the Court. At the time the case was tried,
petitioner resided in Georgia.
Discussion
We must determine whether petitioner is a statutory employee
pursuant to section 3121(d)(3)(C), and therefore, exempt from
self-employment tax.2 Pursuant to section 3121(d)(3)(C), a
statutory employee includes any individual, other than an officer
of a corporation or a common law employee, who performs services
for pay for any person “as a home worker performing work,
according to specifications furnished by the person for whom the
services are performed, on materials or goods furnished by such
person which are required to be returned to such person or a
person designated by him”. An individual is considered to be a
“home worker” for purposes of section 3121(d)(3)(C) if he or she
performs services off the premises of the person for whom the
2 If petitioner qualifies as an employee pursuant to sec.
3121(d)(3)(C), sec. 1402(c)(2) exempts her from having to pay a
self-employment tax.
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Last modified: March 27, 2008