Why aaron disagrees and contends that he is an employee

Assignment Help Taxation
Reference no: EM133354172

TOPIC: Composing Client Tax Letter Chapter 2 Section 2-3f Communicating Tax Research has examples of properly formatted Memos and Client Letters Chapter 9 Research Problem 1 page 9-71 Research Problem 1. Aaron, a resident of Minnesota, has been a driver for Green Delivery Service for the past six years. For this purpose, he leases a truck from Green, and his compensation is based on a percentage of the income resulting from his pickup and delivery services. Green allows its drivers to choose their 10-hour shifts and does not exercise any control on how these services are carried out (e.g., the route to be taken or the order in which parcels are delivered or picked up). Under Green's operating agreement with its drivers, Green can terminate the arrangement after 30 days' notice. In practice, however, Green allows its truckers to quit immediately without giving advance notice. The agreement also identifies the drivers as independent contractors. Green maintains no health or retirement plans for its drivers, and each year it reports their income by issuing Forms 1099-MISC (and not Forms W-2). Green requires its drivers to maintain a commercial driver's license and be in good standing with the state highway law enforcement division. Citing the employment tax Regulations in §§ 31.3121(d)-1(c)(2) and 31.3306(i)-1(b), an IRS agent contends that Aaron is an independent contractor and, therefore, is subject to the self-employment tax. Based on Peno Trucking, Inc. (93 TCM 1027, T.C.Memo. 2007-66), Aaron disagrees and contends that he is an employee (i.e., not self-employed). Who is correct? Why?

Reference no: EM133354172

Questions Cloud

What would you recommend toshiaki do in order to enhance : what would you recommend Toshiaki do in order to enhance his wealth accumulation? If possible, quantify how he would benefit from your recommendations
How map determines particular operating system : A security student is analyzing how map determines a particular operating system.
Creation process of your prototypey explore : Creation process of your prototypey explore and employ appropriate prototyping tools and develop a prototype to test the user requirements for the selected end
Define the linear transformation : brief explanation confirming that your chosen matrices form a counter example - Define the linear transformation
Why aaron disagrees and contends that he is an employee : Green maintains no health or retirement plans for its drivers, and each year it reports their income by issuing Forms 1099-MISC (and not Forms W-2).
Build more confidence in networking : What would you recommend to someone trying to build more confidence in networking?
Mobile application testing mobile application testing : Mobile application testing Mobile application testing Describe each of the tests you have conducted for your mobile application, including functionality testing
Steps with work breakdown structure : Consider the example of a training session project consisting various steps with the work breakdown structure
Make technology work in your favor : you feel that there might be a way to make technology work in your favor.

Reviews

Write a Review

Taxation Questions & Answers

  Taxable income

Determine taxable income before considering expense.

  Prepare a tax research memo

Prepare a tax research memo to the file that addresses the issues you feel are most relevant to Mimi's various issures.

  Income by ordinary concepts

Explain what is meant by income by ordinary concepts

  Identify the tax issues

Identify the tax issues that are raised and the relevant sections of the legislation. Identify any cases and other sources of law or information that apply.

  Calculate carolines taxable income

Calculate Carolines taxable income

  Taxation – law and practice

Show the tax issues that are raised and the relevant sections of the legislation.

  Payment to the taxpayer

Brief statement in your own words of the facts of the cases.

  Prepare regular corporation tax return

Prepare the C Regular Corporation Tax Return for the Lawson And Norman Enterprise

  Taxation law

Advise the participants in the ‘barter' system of the income tax implications, if any, of participating in the system.

  A tax on cigarettes is a good way of raising tax revenue

Discuss- A tax on cigarettes is a good way of raising tax revenue for the government

  Prepare the required journal entry

Prepare the required journal entry to record the tax expense

  Calculate barbs taxable income

Calculate Barb's taxable income? What nonrefundable credit is Barb eligible for based on the information you have?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd