§1122

1122(b)(3), 110 Stat. 1766 (1996 Act). Sec. 7491, which shifts the burden of proof to the Secretary in certain other circumstances, does not apply to employment tax disputes.

The Court need not decide this question today, however, because it goes to the merits ofan RA '78 sec.

The Court need not decide this question today, however, because it goes to the merits ofan RA '78 sec.

aration of this case was characterized by a consistent lack of cooperation and by considerable obfuscation designed to prevent respondent from 11Subsec. (e) was added to act sec. 530 by the Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1122(a), 110 Stat. 1766. 12Sec. 7491, which authorizes a shift in the burden of proof if certain requirements are met, applies only to taxes imposed by subtit. A or B and does not apply to employment taxes imposed by subtit. C. - 12 - ascertaini

plemented by T.C. Memo. 2004-43, aff’d, 425 F.3d 1203 (9th Cir. 2005). While the burden of proof may also shift to the Commissioner with respect to certain issues under section 530, see Small Business Job Protection Act of 1996, Pub. L. No. 104-188, § 1122, 110 Stat. 1755, 1766–67 (amending section 530 to include section 530(e)(4)), this provision does not affect our analysis here. 6 [*6] A party may amend his pleading once as a matter of course at any time before a responsive pleading is served

t., P.C., 119 T.C. at 132–33 (analyzing legislative history and concluding that section 530 relief was not 5 Revenue Act of 1978, Pub. L. No. 95-600, 92 Stat. 2763, 2885 (amended by the Small Business Job Protection Act of 1996, Pub. L. No. 104-188, § 1122, 110 Stat. 1755, 1766–68). 6 With certain limited statutory exceptions, the classification of particular workers or classes of workers as employees . . . for purposes of Federal employment taxes must be made under common law rules. . . . The b

in partnerships that own U.S. real property interests. Accordingly, section 897(g) provides: "The Foreign Investment in Real Property Tax Act of 1980 ("FIRPTA") is subtitle C ofTitle XI ofthe Omnibus Reconciliation Act of 1980, Pub. L. No. 96- 499, sec. 1122, 94 Stat. at 2682. - 18 - SEC. 897(g). Special Rule for Sales ofInterest in Partnerships, Trusts, and Estates.--Underregulations prescribed by the Secretary, the amount ofany money, and the fair market value ofany property, received by a no

the reasonable basis inqui is to be liberally construed in favor ofthe taxpayer. See H. R. Rept. No. 5-1748, at 5 (1978), 1978-3 C.B. (Vol. 1) 629, 633. Section 530(e)(4), added by the Small Business Job Protection Act of 1996, Pub. L. No. 104-188, sec. 1122(a), 110 Stat. at 1766, places the burden ofproofon the Secretary ifthe taxpayer establishes a prima facie case that it was reasonable not to treat an individual as an employee and the taxpayer has complied with the Secretary's reasonable re

the reasonable basis inqui is to be liberally construed in favor ofthe taxpayer. See H. R. Rept. No. 5-1748, at 5 (1978), 1978-3 C.B. (Vol. 1) 629, 633. Section 530(e)(4), added by the Small Business Job Protection Act of 1996, Pub. L. No. 104-188, sec. 1122(a), 110 Stat. at 1766, places the burden ofproofon the Secretary ifthe taxpayer establishes a prima facie case that it was reasonable not to treat an individual as an employee and the taxpayer has complied with the Secretary's reasonable re

til there had been so excluded an amount equal to the taxpayer's contribution; thereafter, all amounts received would be fully includable in gross income. Id. However, this provision was repealed by the Tax Reform Act of - 7 - 1986, Pub. L. 99-514, sec. 1122(c) (1), (h) (1)-(7), 100 Stat. 2467, 2470.5 Petitioners should understand that the Tax Court is a court of limited jurisdiction and that we are not at liberty to make decisions based solely in equity. See Commissioner v. McCoy, 484 U.S. 3, 7

ificant segment requirement * * * be construed to require a reasonable showing of the practice of more than 25 percent of the industry (determined by not taking into account the taxpayer)". Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1122, 110 Stat. 1766 (adding subsection (e) of act section 530). In addition to the specific safe harbors of act section 530(a) (2), a taxpayer is entitled to act section 530 relief if it can demonstrate any other reasonable basis for treating i

ischarge the individual; (5) whether the work is part of the 18 Petitioner did not contend that the burden of proof was placed upon respondent pursuant to act sec. 530(e)(4) as added by the Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1122(b)(3), 110 Stat. 1767. - 12 - principal’s regular business; (6) the permanency of the relationship; and (7) the relationship the parties believed they were creating, Ewens & Miller, Inc. v. Commissioner, 117 T.C. 263, 270 (2001); Weber v. C

Rev. Proc. 85-18, Congress would have amended section 530(a)(1)(B) to allow delinquent filing. Respondent claims that when Congress was considering amendments to section 530 as part of the Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1122, 110 Stat. 1755, 1766, it was aware of Rev. Proc. 85-18 and respondent’s positions stated therein with respect to section 530 relief. Rev. Proc. 85-18 is referenced in the legislative history of the 1996 amendments to section 530. See, e.g.,

30, but this provision does not affect our analysis here. Section 530(e)(4) applies only to periods after December 31, 1996, so has no bearing on petitioner’s liabilities for 1995 and 1996. Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1122(b)(3), 110 Stat. 1767. For subsequent periods, a taxpayer desiring to take advantage of Section 530(e)(4) first must establish a prima facie case that it was reasonable not to treat an individual as an employee and must - 10 - have fully co

30, but this provision does not affect our analysis here. Section 530(e)(4) applies only to periods after December 31, 1996, so has no bearing on petitioner's liabilities for 1995 and 1996. Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1122(b)(3), 110 Stat. 1767. For subsequent periods, a taxpayer desiring to take advantage of Section 530(e)(4) first must establish a prima facie case that it was reasonable not to treat an individual as an employee and must have fully cooperate

er’s three full-time employees. Amount of Taxes Due Because we have concluded that the six video workers were petitioner’s employees, it follows that petitioner is liable for FICA and withholding taxes of $1,085.36 and FUTA taxes of $387 for 1996. Decision will be entered for respondent. 4(...continued) Job Protection Act of 1996, Pub. L. 104-188, sec. 1122(b)(3), 110 Stat. 1767.

efore January 1, 1980, and 2 Sec. 3121(d)(1) defines an employee, inter alia, as “any officer of a corporation”. See also sec. 3306(i). 3 Sec. 530 was amended by adding subsection (e). See Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1122, 110 Stat. 1766. This amendment has no effect on the resolution of this case. - 6 - (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

a). 1 Sec. 530 of the Revenue Act of 1978 has been amended by Pub. L. 96-167, sec. 9(d), 93 Stat. 1278; Pub. L. 96-541, sec. 1, 94 Stat. 3204; Pub. L. 97-248, sec. 269(c), 96 Stat. 552; Pub. L. 99-514, sec. 1706, 100 Stat. 2781; and Pub. L. 104-188, sec. 1122, 110 Stat. 1766. - 3 - Background Some of the facts have been stipulated and are so found. The stipulation of facts and the attached exhibits are incorporated herein by this reference. At the time the petition was filed, petitioner resided

ated as an independent contractor. Petitioner's experience by itself is not evidence of the "long-standing recognized practice of a significant segment" of the trucking industry. See, e.g., Small Business Job Protection Act of 1996, Pub. L. 104-188, sec. 1122, 110 Stat. 1755, 1766 (amending section 530 by adding new subsection (e), which provides that "in no event shall the significant segment requirement * * * be construed to require a reasonable showing of the practice of more than 25 percent

1122(a)(2), (h)(1), 100 Stat. 2085, 2466, 2470. However, the Tax Reform Act of 1986, secs. 1122(h)(5) and 1124, provide transitional rules under which lump sum distributions made after Dec. 31, 1986, will nevertheless continue to qualify, under certain limited circumstances, for the more generous 10-year (continued...) - 8 - A lump sum distri

1122(a)(2), (h)(1), 100 Stat. 2085, 2466, 2470. However, Tax Reform Act of 1986, secs. 1122(h)(5) and 1124 provide transitional rules under which lump sum distributions made after Dec. 31, 1986, will nevertheless continue to qualify, under certain limited circumstances, for the more generous 10-year forward averaging method; 100 Stat. 2085, 24