On May 27, 2020, the Tax Court issued a Memorandum Opinion in the case of Thoma v. Commissioner (T.C. Memo. 2020-67). Although there are a number of sub-issues related to whether the petitioner-husband (PH) was an employee or independent contractor, including deductibility of medical and business expenses, the core issue in Thoma v. Commissioner boils down to the age old question of whether PH was an employee or independent contractor of an accounting firm. Brief Background to Thoma v. Commissioner The accounting firm of Thoma & Hjerpe (TH) paid petitioner-husband (PH) for accounting services rendered in 2010 and 2011. These biweekly payments totaled $69,156 in 2010 and $63,299 in 2011. On their tax returns for 2010 and 2011, the petitioners took the position that PH was self-employed and that the biweekly payments constituted self-employment income for each year, such that PH was liable for self-employment tax. They also claimed an…