¹According to the IRS Statistics of Income Bulletin (Spring 2003), 2.9 million were filed in tax year 2000 vs. 2.7 million in 1999.

²IR 2003-27 (3/10/03).

³For a discussion, see Hegt, JGTRRA Cuts Rates, Increases Some Deductions and Credits, 34 The Tax Adviser 542 (September 2003).

⁴Regs. Sec. 1.179-2(c)(3)(ii) defines net income from an S corporation trade or business to be computed before officer-shareholder compensation.

⁵IRS Letter Ruling (FSA) 200230030 (7/26/02).

⁶Robert Schwartz, TC Memo 2003-86.

⁷Ed Montgomery, TC Memo 2003-64.

⁸Lucian T. Baldwin III, TC Memo 2002-162.

9Timothy T. Kuberski, TC Memo 2002-200.

¹⁰Jerry L. Thomas, 11th Cir., 4/23/03.

¹¹Donald G. Oren, TC Memo 2002-172.

¹²Joseph M. Grey Public Accountant, P.C., 119 TC 121 (2002).

¹³RA 78 Section 530 allows industry-accepted standards as a safe-harbor support for treatment of workers as independent contractors.

¹⁴Water-Pure Systems, Inc., TC Memo 2003-53; Nu-Look Design, Inc., TC Memo 2003-52; Specialty Transport and Delivery Services, Inc., TC Memo 2003-51; Superior Proside, Inc., TC Memo 2003-50; Mike J. Graham Trucking, Inc., TC Memo 2003-49; and Veterinary Surgical Consultants, P.C., TC Memo 2003-48.

¹⁵Yeagle Drywall Co., Inc., 54 Fed.Appx. 100 (10th Cir. 2002).

¹⁶Veterinary Surgical Consulting, PC, 117 TC 141 (2001) and Yeagle Drywall Co., Inc., TC Memo 2001-284; see Karlinsky and Burton, S Corporations: Current Developments, 34 The Tax Adviser 660 (October 2002).

¹⁷Michael Chin, TC Memo 2003-30.

¹⁸TD 9013 (8/20/02).

¹⁹IRS Letter Ruling (TAM) 200247002 (11/22/02).

²⁰Rev. Proc. 2003-27, IRB 2003-13, 667; Rev. Proc. 2003-23, IRB 2003-11, 599.

²¹Rev. Proc. 2003-27, note 20 supra.

²²Rev. Proc. 2003-23, note 20 supra; see Horvath, Tax Clinic, Plan Distributions from SESOPs, 34 The Tax Adviser 526 (September 2003).

²³IRS Letter Ruling 200228008 (7/12/02).

²⁴IRS Letter Ruling 200231006 (8/2/02).

²⁵See, e.g., IRS Letter Ruling 200229025 (7/19/02); see also IRS Letter Ruling 200236038 (9/6/02).

²⁶IRS Letter Ruling 200301036 (1/3/03).

²⁷IRS Letter Ruling 200227016 (7/5/02).

²⁸IRS Letter Ruling 200236044 (9/6/02).

²⁹IRS Letter Ruling 200306033 (2/7/03).

³⁰IRS Letter Ruling 200320013 (5/16/03).

³¹IRS Letter Ruling 200252085 (12/26/02).

³²IRS Letter Ruling 200236005 (9/6/02).