Common Law Tests

ID:
Office:
UILC:
CCA_2010021810005341
---
3121.04-01
Number: 201012040
Release Date: 3/26/2010
From: ---
Sent: Thursday, February 18, 2010 10:00:58 AM
To: ---
Cc: ---
Subject: RE: Inquiry
Thanks, I recall our email dialogue about this. I know you said it's a for-profit entity, but being that the issue could also come up in EO context, I'm copying --- in case he has any thoughts on the issue.
1. I would agree--I see no reason it wouldn't be subject to income tax. ---
--- Imposition of SECA tax here would be questionable due to the need for an underlying trade or business, a highly factually question that is likely not to be satisfied in at least some of the situations.
2. I think an employment relationship is even more unlikely on the facts and ---
---. I suppose we don't have a statute problem on the ET if there were no 941s filed, ---
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Let me know if you want to discuss.