The Congressional Research Service released an April 26 report
examining provisions contained in recently introduced legislation (S. 2343
) that would require tax payers who are shareholders of a subchapter S corporation engaged as a partner in a profession service business to include income or loss attributable to such business in their net earnings from self-employment for employment tax purposes. These provisions would only apply to taxpayers with adjusted gross income in excess of a specified amount, varying by filing status.
See Mark P. Knightly, "Business Organizational Choices: Taxation and Responses to Legislative Changes
" CRS R40748 (Apr. 26, 2012).
Hat Tip: Tax Analysts,
2012 TNT 83-61 (Apr. 26, 2012).
Posted by Theresa Androff, Associate Editor, Wealth Strategies Journal