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Taxpayers have won and lost cases seeking to avoid self-employment tax on their income as members of limited liability companies. The IRS has had victories (a) disregarding an attempt to shift self-employment income into an S corporation, and (b) making taxpayers pay tax and then sue for a refund when contesting IRS claims that S corporation distributions were really compensation. To tie together 2017 developments, READ MORE
A recent Tax Court opinion, Castigliola v. Commissioner, held that an active LLC member was liable for SE tax. This article describes that case, compares and contrasts that case to the Hardy case, and provides planning suggestions. READ MORE
Here we examine why the U.S. Tax Court rejected a financial consultant’s efforts to shift income to an S corporation to save self-employment tax, and how another approach may have been more successful in avoiding SE tax. READ MORE
Self-employment (SE) tax is one of the driving forces when a tax advisor recommends what type of entity to use for one’s business. READ MORE
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