§3508 — Treatment of real estate agents and direct sellers
3 cases·3 cited
Statute Text — 26 U.S.C. §3508
For purposes of this title, in the case of services performed as a qualified real estate agent or as a direct seller—
the individual performing such services shall not be treated as an employee, and
the person for whom such services are performed shall not be treated as an employer.
For purposes of this section—
The term “qualified real estate agent” means any individual who is a sales person if—
such individual is a licensed real estate agent,
substantially all of the remuneration (whether or not paid in cash) for the services performed by such individual as a real estate agent is directly related to sales or other output (including the performance of services) rather than to the number of hours worked, and
the services performed by the individual are performed pursuant to a written contract between such individual and the person for whom the services are performed and such contract provides that the individual will not be treated as an employee with respect to such services for Federal tax purposes.
The term “direct seller” means any person if—
such person—
is engaged in the trade or business of selling (or soliciting the sale of) consumer products to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis which the Secretary prescribes by regulations, for resale (by the buyer or any other person) in the home or otherwise than in a permanent retail establishment,
is engaged in the trade or business of selling (or soliciting the sale of) consumer products in the home or otherwise than in a permanent retail establishment, or
is engaged in the trade or business of the delivering or distribution of newspapers or shopping news (including any services directly related to such trade or business),
substantially all the remuneration (whether or not paid in cash) for the performance of the services described in subparagraph (A) is directly related to sales or other output (including the performance of services) rather than to the number of hours worked, and
the services performed by the person are performed pursuant to a written contract between such person and the person for whom the services are performed and such contract provides that the person will not be treated as an employee with respect to such services for Federal tax purposes.
This section shall not apply for purposes of subtitle A to the extent that the individual is treated as an employee under section 401(c)(1) (relating to self-employed individuals).
3 Citing Cases
Petitioner's Employment Status Under Section 3508(b)(2) Section 3508 affords nonemployee status to certain statutorily defined classes of activities, including those of a direct seller .
Respondent argues that petitioner is a "qualified real estate agent" within the meaning of section 3508, and that he is liable for self-employment taxes on real estate and insurance commissions he earned.
Petitioner also relies on section 3508, which affords nonemployee status to certain statutorily defined classes of activities.