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-NEC (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 S$ 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?tax return problem X Debra Schoenfeld posted on Oct 5, 2024 8:32 AM | suggest that you print the blank forms. Go to the problem in appendix F. Start with #1 which is the schedule C and form 4562. In the discussion area | have put information in the discussion area. It is by the numbers that are in the problem. Please ask questions. Thanks, Prof. Schoenfeld chapter 9, research problem #1 X Debra Schoenfeld posted on Sep 29, 2024 8:03 PM = Cr) Edited Yes, this is the problem. It is a real problem in the world, UPS drivers are employees, Fed Ex drivers are independent contractors. Also in the area of construction independent contractors v. employees is big. There was a big case in 1994 with Microsoft and their programmers, same issue. However, for our problem, please use what is given you in the problem and the Byers case and Revenue Ruling 87-41. Please ask questions. Please use the facts, issue question, authority/law, analysis/reasoning and conclusion format. You should be able to find everything in CCH Answer connect. If you look at the beginning of chapter 9 it talks about the common law factors that is in the revenue ruling 87-41 that is the common law factors. Also, if you use CCH Answer Connect there is what is called History, since you have to sign in, it will be your history and you can just copy and paste this into a word document so that should minimize the work. You will take each of the common law factors (revenue ruling 87-41) and apply it to Aaron's situation, with each one say that it indicates employee or independent contractor. Then come to a conclusion is Aaron an employee or an independent contractor. Even though the court says that no one factor is more important than the other it is the ability of the employer to control the details of the work. Not that the employer exercise this right, but the fact that he (the employer) has this right