Paul E. Hathaway and Brenda J. Hathaway, (1996)
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Paul E. Hathaway and Brenda J. Hathaway, (1996)
T.C. Memo. 1996-389
UNITED STATES TAX COURT PAUL E. HATHAWAY AND BRENDA J. HATHAWAY, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 19122-93. Filed August 21, 1996.Petitioner husband (P) was a traveling sales representative in 1989 and 1990 for a company that manufactured and distributed men's clothing (T). T did not control, and did not have the right to control, the manner or means by which P solicited sales. P had a substantial investment in facilities and bore substantially all the expenses of his sales activities. P also bore the risk of loss from his sales activities. P and T had a permanent working relationship, although terminable at the will of either party. P received employee-type benefits from T.Held: P was an independent contractor and was not an employee in 1989 and 1990. Sec. 62(a)(1), I.R.C. 1986.Walter T. Hart, for petitioners. Jeffrey A. Schlei, for respondent.MEMORANDUM FINDINGS OF FACT AND OPINION CHABOT, Judge: Respondent determined deficiencies in Federal individual income tax1 against petitioners as follows:Year Deficiency 1989 $10,286 1990 11,652 After concessions by both sides,2 the issue for decision is whether petitioner Paul E. Hathaway, hereinafter sometimes referred to as Hathaway, a traveling sales representative, was a common law employee, a statutory employee, or an independent contractor in 1989 and 1990.FINDINGS OF FACT Some of the facts have been stipulated; the stipulations and the stipulated exhibits are incorporated herein by this reference.When the petition was filed in the instant case, petitioners resided in Urbandale, Iowa.Background Beginning in 1969, and during the years in issue, Hathaway was a traveling sales representative for The Apparel Group, Ltd., and its predecesso...See the full content of this document
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