FICA/Self-Employment Tax Exposure: S Corps & Partnerships

Description

Passthrough entities raise a number of issues in the FICA/SECA tax areas.
The issue of reasonable compensation for S shareholders continues to be an area of interest for the IRS and recent cases have begun to address issues of applying self-employment taxes to income passing through to members of LLCs taxed as partnerships. This course will look at recent developments and planning options to deal with the issues raised.

Highlights

• General applicability of FICA and SECA to various forms of compensation
• S Corporation shareholders and the issue of reasonable compensation, including factors that have led to successful IRS challenges
• Limited partner exception and the impact of the Renkemyer decision

Objectives

• Documenting reasonableness of compensation in an S setting
• Planning options for the reporting of self-employment income for LLC interest holders
• Application of self-employment tax to partnership pass through income

Designed For

All CPAs with S Corp & Partnership Clients