Alsco Storn Windows, Inc. v. United States of America, Alsco Northwest, Inc. v. United States

This is an appeal from a judgment dismissing the complaints in two actions to recover Federal Insurance Contributions taxes (paid under § 3121 et seq., Internal' Revenue Code, 26 U.S.C.A. § 3121 et seq.) and Federal Unemployment taxes paid under § 3306 et seq., Internal Revenue Code, 26 U.S.C.A. § 3306 et seq.) alleged to have been erroneously paid and collected by the plaintiffs between the period ending September 30, 1954 and December 31, 1958, on the earnings of workers known as “installers” or “applicators”.

The single question presented is whether these “installers” were “employees” of the taxpayer-plaintiffs within the meaning of that word as used in §§ 3121(d) and 3306(i), Internal Revenue Code, 26 U.S.C.A. §§ 3121 (d), 3306 (i) as they read after the amendment of 1948 and the Treasury Regulations, § 31.3121 (d)-l.

There is no dispute as to the facts found by the District Court. Appellants contend that the District Court erred in concluding as a matter of law, on undisputed facts, that the “installers” were employees under the Federal Insurance Contributions Act, § 3121(d), Internal Revenue Code [26 U.S.C.A, § 3121(d)], and the Federal Unemployment Tax Act, § 3306 (i),…