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In this case, the highest tier corporation, or employer, cannot ignore the "employee" status of an individual who for the sake of argument is an employee but for the fact that he has incorporated himself and chooses when he will be compensated from his own corporation. This scheme (although not necessarily intended here) has been tried in various situations to avoid participation in certain retirement plans or to create a significant retirement benefit which does not apply to the rank and file, or simply to defer taxation, among others.

It is incumbent upon the "employer" to treat "employees" as such, and the relationship cannot be ignored by having employees incorporate themselves. If Mr. Francis meets the overwhelming majority of the "20 factors," I believe it would be naive to think that his corporation wouldn't be ignored for tax purposes.
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