Mr. Ramirez, an "on-air personality," was employed by radio station KXTN in San Antonio to host a radio program six days a week and perform related services pursuant to his employment agreement. Outside of his duties as a radio personality, Mr. Ramirez sought additional sponsors, assisted them in developing ad campaigns, and promoted their products and services both during on-air time and at "off-air" appearances. The station acted as a conduit for payment of the promotional service fees and Mr. Ramirez's W-2 included his regular pay plus an amount broken out as talent and remote fees. On his 2007 tax return, Mr. Ramirez took a Schedule C deduction for $26,303 in expenses related to his promotional services though the $82,000 of promotional income was included with his wage income. After weighing a list of factors, the Tax Court determined the promotional work in question did favor independent contractor treatment and allowed Mr. Ramirez to reclassify the $82,000 of talent and remote fee income as Schedule C gross receipts. Juan A. Ramirez , TC Summ. Op. 2013-38 (Tax Ct.).
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