Charlotte's Office Boutique, Inc., (2003)

Docket Number: 5077-01

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Charlotte's Office Boutique, Inc., (2003)

121 T.C. No. 6

UNITED STATES TAX COURT CHARLOTTE'S OFFICE BOUTIQUE, INC., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 5077-01. Filed August 4, 2003.

P is a C corporation owned equally by O and her husband. P petitioned the Court under sec. 7436(a), I.R.C., to redetermine R's determination that P was liable for unreported 1995 through 1998 employment taxes and additions to tax under secs. 6651(a)(1) and 6656, I.R.C. That determination resulted from R's determination that O received 'wages' in the form of payments which P made to O primarily as 'royalties' and, for 1995 and 1996, that P also had 'Other Workers' who received 'wages'. R concedes his determination as to the other workers and moves the Court to dismiss this case for lack of jurisdiction as to 1996 through 1998. The parties agree that, during those years, O was P's employee as to other payments which O received from P as wages. Held: The Court has jurisdiction over all of the petitioned years in that R has determined contrary to P's audit and litigating position that: (1) O received the disputed amounts as wages and (2) P is liable for the payment of employment taxes under subtitle C as to those disputed amounts. As to -21996, the Court also has jurisdiction by virtue of P's dispute as to R's determination that the other workers were P's employees during that year. Held, further, the disputed amounts are wages. Held, further, P is not entitled to relief under section 530 of the Revenue Act of 1978 Pub. L. 95-600, 92 Stat. 2763, 2885. Held, further, P is liable for the additions to tax determined by R under secs. 6651(a) and 6656, I.R.C., to the extent stated herein.

Robert E. Kovacevich, for petitioner. Milton B. Blouke, for respondent.

LARO, Judge: Petitioner petitioned the Court under section 7436(a)1 to redetermine the following employment tax liabilities and additions thereto determined by respondent:

Tax Period Additions to Tax Ended Employment Tax Sec. 6651(a)(1) Sec. 6656

3/1995 $2,356.20 $589.05 $117.81

6/1995 2,004.30 501.08 100.22

9/1995 1,774.80 443.70 88.74

12/1995 2,627.85 656.96 80.68

3/1996 1,300.50 325.13 65.03

6/1996 2,080.80 520.20 104.04

9/1996 841.50 210.38 42.08

12/1996 2,191.11 212.91 70.27

3/1997 1,942.48 485.62 97.12

6/1997 1,942.48 485.62 97.12

9/1997 1,942.28 -0- 97.12

12/...

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