Self-Employment Tax Archives - FREE Yourself from IRS Problems

Shamsey Oloko January 23, 2017 Self-Employment Tax 0

Is Income Of An LLC Member Subject To Self-Employment Tax?

Unlike corporations which are treated as separate tax entities, the IRS and the Tax Code treat LLCs as “pass-through” entities. Thus, an LLC or “Limited Liability Company” is a business structure that combines the pass-through taxation of a partnership or…

Christine C. Peterson, et al. v. Commissioner of IRS – Retirement Payments May Be Deferred Compensation

In a case of first impression, the Eleventh Circuit Court of Appeals held that payments from a Mary Kay retirement program to one of its retired salespersons were earnings subject to self-employment tax. This holding was based upon the fact…

Shamsey Oloko June 15, 2016 Income, Income Exclusions, Self-Employment Tax 0

Excluding Self-Employment Income Under I.R.C. §1402(a)(3)(C)

Taxpayers earn self-employment income which is net income “from any trade or business carried on by such individual” under I.R.C. §1402. The meaning of “trade or business” is the same as it is under I.R.C. §162. The Supreme Court has…