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List of 1995 Articles From
The Independent Contractor Report

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1. TELEMARKETERS WORKING AT HOME HELD INDEPENDENT CONTRACTORS FOR FEDERAL EMPLOYMENT TAX PURPOSES [December 1995 Report]
   • Firm markets hotel dining and lodging packages.
   • Telephone solicitors working from their own homes were treated as independent contractors. The IRS agreed.

• TRUCK UNLOADERS OR "IN-HOUSE LUMPERS" AT FOOD WAREHOUSE HELD EMPLOYEES FOR FEDERAL EMPLOYMENT TAX PURPOSES [December 1995 Report]
  • Firm warehouses and distributes food. Workers unload trucks at firm's warehouse.
  • Firm issued Form 1099s. Others at firm doing same work received Form W-2s.

• PHYSICIAN WITH PROFESSIONAL CORPORATION HELD INDEPENDENT CONTRACTOR FOR FEDERAL EMPLOYMENT TAX PURPOSES [November 1995 Report]
  • Doctor’s professional corporation contracted with out-patient surgical facility to provide managerial services.
  • IRS ruled employee. Both United States District Court and Appeals Court disagreed.

• BONUSES PAID BY MEDICAL PERSONNEL PLACEMENT FIRM BELONG ON FORM W-2, NOT FORM 1099 [November 1995 Report]
  • Agency supplied personnel to hospitals and other medical facilities. Some workers were paid directly by, and received W-2s from, the client.
  • IRS ruled bonuses paid by agency are subject to employment taxes.

• DOCTOR, AN EXPERT IN MALARIOLOGY, HELD EMPLOYEE FOR FEDERAL INCOME TAX PURPOSES [October 1995 Report]
  • He was working in Pakistan for an American agency.
  • The Tax Court agreed with the doctor that he was entitled to exclude his foreign-earned income.

• NEWSPAPER CARRIER HELD EMPLOYEE FOR FEDERAL EMPLOYMENT TAX PURPOSES [October 1995 Report]
  • The papers were required to be delivered by 7:00 a.m.
  • Though the written agreement said the worker was an independent contractor, the IRS ruled otherwise.

• FARM WORKER MUST PAY FEDERAL INCOME TAX HE CLAIMS PAYER WITHHELD [September 1995 Report]
  • Though IRS Form W-4 was never completed, worker claimed credit for Federal income tax that payer did not withhold.
  • IRS denied the credit and the Tax Court agreed.

• CHIROPRACTORS AT HOLISTIC HEALTH CARE CENTER HELD EMPLOYEES FOR FEDERAL EMPLOYMENT TAX PURPOSES [September 1995 Report]
  • Workers performed chiropractic services, massage therapy and acupuncture at firm's premises.
  • They performed services for others, but did not advertise.

• MERCHANDISERS HELD INDEPENDENT CONTRACTORS FOR STATE UNEMPLOYMENT COMPENSATION PURPOSES [August 1995 Report]
  • They took inventories, repackaged goods and arranged retail store displays for manufacturers.
  • New York Supreme Court, Appellate Division, reversed field auditor and Unemployment Insurance Appeal Board.

• TAXICAB DRIVERS TREATED AS INDEPENDENT CONTRACTORS IN GOOD FAITH [July 1995 Report]
  • The Court found that the good faith of the firm was shown by "overwhelming evidence."
  • Form 1099s were not required for cab drivers who "split" their fares with the firm..

• HOUSTON ROCKETS BASKETBALL PLAYER HELD EMPLOYEE OF TEAM FOR FEDERAL INCOME TAX PURPOSES [July 1995 Report]
  • Allen Leavell had a personal service corporation that contracted with the Rockets. He also personally signed a contract with the team.
  • One judge dissented and felt that player's PSC should be recognized.

• FULL-TIME, TENURED PROFESSOR OF SHAKESPEARE HELD EMPLOYEE FOR FEDERAL INCOME TAX PURPOSES [June 1995 Report]
  • He taught courses during regular school hours as an employee. At night and during the Summer he taught closely related courses as, he contended, an independent contractor.
  • The IRS found he was an employee at all times and disallowed his Schedule C. The Tax Court agreed.

• WORKERS THAT SEW SPECIALIZED SPORTSWEAR FABRIC KITS AT HOME ARE STATUTORY EMPLOYEES FOR FICA PURPOSES AND COMMON-LAW INDEPENDENT CONTRACTORS FOR FITW AND FUTA PURPOSES [June 1995 Report]
  • The firm supplied material that the workers picked up weekly.
  • Payment was by the piece and the finished product had to be returned to the firm.

• STOCKBROKER HELD EMPLOYEE BY IRS AND TAX COURT FOR FEDERAL INCOME TAX PURPOSES [May 1995 Report]
  • He filed Form 1040 and claimed Schedule C business deductions.
  • The IRS claimed that the Schedule C was not proper. The Tax Court agreed.

• NURSES HELD EMPLOYEES FOR FEDERAL EMPLOYMENT TAX PURPOSES [May 1995 Report]
  • Health care provider contracted with firm to furnish personnel.
  • Nurses hired by the firm were treated as independent contractors. The IRS disagreed.

• USED CAR SALESPEOPLE HELD EMPLOYEES FOR FEDERAL EMPLOYMENT TAX PURPOSES [April 1995 Report]
  • Salespeople, paid by commission, were treated as independent contractors.
  • District Court agreed with IRS that workers were employees.

• REGISTERED NURSES HELD INDEPENDENT CONTRACTORS FOR FEDERAL EMPLOYMENT TAX PURPOSES [April 1995 Report]
  • Nurses did long-term care assessments of Medicaid recipients.
  • IRS determined that the nurses were employees. A twelve-person jury disagreed.

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