Dunn & Clark, P.A. v. Commissioner of Irs, for and on Behalf of the United States of America

57 F.3d 1076 75 A.F.T.R.2d 95 -2714, 95-2 USTC P 50,383 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. DUNN & CLARK, P.A., Plaintiff-Appellant, v. COMMISSIONER OF IRS, for and on Behalf of the UNITED STATES of America, Defendant-Appellee. No. 94-35562. United States Court of Appeals, Ninth Circuit. June 8, 1995. Before BROWNING, WRIGHT and T.G. NELSON, Circuit Judges. 1 MEMORANDUM ** 2 Dunn & Clark, P.A., is a corporation engaged only in the practice of law. Robin Dunn and Stephen Clark are its only directors and officers and its only attorneys. During the years 1987 through 1989, it did not make any payments designated as wages or salary to the attorneys. Instead, it made occasional payments characterized as dividends. The IRS interpreted these as wages and assessed employment taxes against the corporation. 3 After paying the taxes, Dunn & Clark sued for a refund. It argued that: (1) the attorneys were not employees; (2) the payments made to them were not…