TN 15 (06-97)

A. POLICY PRINCIPLE — GENERAL

The term “trade or business” shall not include services as an employee.

B. POLICY — SPECIFIC GROUPS

The following are deemed to be self-employed regardless of their possible status as employees:

• Newspaper vendors who have attained age 18;

• Sharefarmers;

• A duly ordained, commissioned or licensed minister of a church in the exercise of his/her ministry or by a member of a religious order in the exercise of duties required by such order;

• Certain employees of Foreign Governments and international organizations when the services are performed in the U.S. by a U.S. citizen;

• Certain employees of State and local governments in positions compensated solely on a fee basis;

• Certain members of fishing boat crews and other individuals who work on boats engaged in catching fish or other forms of marine life;

• Real estate agents and direct sellers meeting certain conditions;

• Employees of churches or church-controlled organizations that elect not to participate in Social Security.

C. PROCEDURE

1. General Rule

Develop only if material. If development is necessary, first determine whether there is an employer-employee relationship. If none, develop trade or business, or whether income is excluded as above.

2. Allegation

Accept the individual's allegation if:

• The activity could constitute a trade or business;

• Service would be covered if performed as an employee, and;

• There was a consistent reporting of earnings.