IRS Pursuing Self-employment Taxes from LLC Members

Authors

Troy K. Lewis, Brigham Young University - ProvoFollow
Ron Worsham, Brigham Young University - Provo

Keywords

tax ambiguity, self-employment tax, LLC classification

Abstract

Ambiguity in the tax law often provides opportunities for taxpayers. For nearly three decades, how earnings of a limited liability company (LLC) are reported for self-employment tax purposes has been unsettled. (LLC in this article also refers to limited liability partnerships (LLPs) and professional limited liability companies (PLLCs).) This uncertainty has created a divergence in practice that has gone relatively unchecked until recently when the IRS started using legal action to clarify the application of self-employment tax laws to LLCs.

Original Publication Citation

"IRS pursuing self-employment taxes from LLC members", Journal of Accountancy, Edition May 2018, Pages 54-58, AICPA, Durham, North Carolina, 2018

BYU ScholarsArchive Citation

Lewis, Troy K. and Worsham, Ron, "IRS Pursuing Self-employment Taxes from LLC Members" (2018). Faculty Publications. 8596.
https://scholarsarchive.byu.edu/facpub/8596

Document Type

Peer-Reviewed Article

Publication Date

2018

Publisher

Journal of Accountancy

Language

English

College

Marriott School of Business

Department

Accountancy

University Standing at Time of Publication

Full Professor

Copyright Use Information

https://lib.byu.edu/about/copyright/