Case: Financial Advisor Was Common-Law Employee, Not Independent Contractor or Statutory Employee, Under Common-Law Test (E.D. Pa.)

A financial advisor was a common-law employee rather than an independent contractor or statutory employee, the district court held, granting summary judgment for the government. Taxpayer, a financial advisor, worked for a major bank for over 30 years and filed tax returns, claiming independent contractor or statutory employee status on a Form Schedule C to deduct business expenses. The IRS rejected the returns and assessed penalties. The court held that Taxpayer was a common-law employee based on the totality of circumstances under the common-law test. In weighing the factors, the court determined that while Taxpayer had flexibility in scheduling and ...