John a resident of California, has been a driver for Red Delivery Service for the past nine years. For this purpose, he leases a truck from Red, and his compensation is based on a percentage of the income resulting from his pickup and delivery services. Red 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 Red's operating agreement with its drivers, Red can terminate the arrangement after 30 days' notice. In practice, however, Red allows its truckers to quit immediately without giving advance notice. The agreement also identifies the drivers as independent contractors. Red 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). Red requires its drivers to maintain a commercial driver's license and be in good standing with the state highway law enforcement division. An IRS agent contends that Marty is an independent contractor and, therefore, is subject to the self-employment tax. Marty disagrees and contends that he is an employee (i.e., not self-employed). Who is correct? Why? Answer this question under the IRS guild lines for Employee/Independent Contractors. Lastly, how would the state of California treat Marty? Any different treatment than the federal government.