New Business Client Tax Organizer Form

FOR LLs ONLY - SELF EMPLOYMENT TAX

Recently through various IRS tax court rulings, the IRS has expanded their approach of how self-employment tax on the profits of an organization should be handled for LLC Members. In the past, typically the profits have not been subject to self-employment tax, but now the IRS has begun to take the stand that all guaranteed payments and profits of the LLC should be subject to self-employment tax unless the member does not have active participation. It is our position that all profits of the LLC are subject to SE Tax except and will be reported as such unless there is no active participation.