Veterinary Surgical Consultants, P.C. v. Comm'r
United States Tax Court
P, an S corporation, distributed all of its net income to A, its sole shareholder and president. A performs substantial services for P. On his Forms 1040, A reported P's net income as nonpassive income from an S corporation. R issued to P a Notice of Determination Concerning Worker Classification Under Sec. 7436, determining that A was an employee of P for purposes of Federal employment tax.
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P, an S corporation, distributed all of its net income to A, its sole shareholder and president. A performs substantial services for P. On his Forms 1040, A reported P's net income as nonpassive income from an S corporation. R issued to P a Notice of Determination Concerning Worker Classification Under Sec. 7436, determining that A was an employee of P for purposes of Federal employment tax. HELD: A is an employee of P for purposes of Federal employment tax pursuant to sec. 31.3121(d)-(1)(b), Employment Tax Regs., because A is an officer who performs substantial services for P and receives…
1Opinion of the Court
OPINION
Jacobs, Judge:
This case is before the Court on a petition for redetermination of a notice of determination concerning worker classification under section 7436 (notice of determination). It was submitted to the Court fully stipulated under Rule 122. The sole issue to be decided is whether Kenneth K. Sadanaga, D.V.M. (Dr. Sadanaga), is an employee of petitioner for the period at issue (each of the four quarters of 1994, 1995, and 1996) for purposes of Federal employment taxes.1
Rule references are to the Tax Court Rules of Practice and Procedure, and except as otherwise noted, section…
2Cases cited8 opinions
- Helvering v. R. J. Reynolds Tobacco Co.Supreme Court of the United States · 1939
- United States v. Magnolia Petroleum Co.Supreme Court of the United States · 1928
- Spicer Accounting, Inc. v. United StatesCourt of Appeals for the Ninth Circuit · 1990
- Antonio R. Durando Naomiann N. Durando v. United StatesCourt of Appeals for the Ninth Circuit · 1995
- Joseph Radtke, S.C. v. United StatesCourt of Appeals for the Seventh Circuit · 1990
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