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Ruling on Victory Tax By Revenue Department DepartmentFree Free Lance Riders Subject to It As Well as Social Security Tax TaxST ST LOUIS Mo May 17 The Com ¬ missioner of Internal Revenue in Wash ¬ ington has made a final ruling to the effect that jockeys who are independent contractors are subject to the regulations governing both social security and victory tax taxIn In a letter to Joseph A Murphy J Mooney Deputy Commissioner construed the law as governing both cases casesSome Some time ago judge Murphy at the re ¬ quest of a number of members of the Horsemens Benevolent Protective Association submitted the following hypo ¬ thetical question questionShould Should ah owner who has no yearly or part yearly retainer on a professional jockey but who pays him the regular winning and losing fees as provided by the rules of the Racing Commissions of the various States for such race or races that said jockey may ride for said owner with ¬ hold Victory Tax for such fees feesThe The Commissioner had previously ruled ruledThe The determination of whether an in ¬ dividual is an independent contractor or an employe for Victory Tax purposes is governed by the status of the individual for Federal Social Security Tax purposes purposesIn In the ruling just received the Commis ¬ sioner writes writesFor For employment tax purposes the Bureau has held that a Free Lance jockey who was engaged for one race under oral arrangements with a race horse owner was an employe of such owner for purposes of subchapters A and C of chapter 9 of the Internal Revenue Code as amend ¬ ed by the Social Security act amendments of 1939 Also in section 311 it was held that a jockey engaged under contract with a race horse owner is an employe of such owner within the meaning of Titles 8 and 9 of the Social Security Act ActJudge Judge Murphy has sent the ruling to Harold Simmons National Secretary of the Horsemens Association asking him to notify all members of their obligations under the ruling
