Cinema Art Theatre of Springfield, Inc. v. United States

OPINION

RICHARD MILLS, District Judge.

Was the IRS substantially justified in classifying Plaintiffs nude dancers as “employees” under the tax code?

After much dancing around the statutes, the Court finds that it was not.

Attorney’s fees granted to the Plaintiff.

I. Background.

Plaintiff Cinema Art Theatre (“Cinema”) operates an adult entertainment nightclub, where female entertainers would perform dances on the main stage and also provide “couch” and “mystery” dances for individual customers. Cinema dictated the order of performance for each dancer, and also set prices for personal dances. Cinema…