Pass-through income to S corporation shareholders not self-employment earnings for Keogh deduction purposes

Article Abstract:

The US Court of Appeals for the Ninth Circuit ruled in Durando v. United States that pass-through earnings received by S corporation shareholders who provide services for the corporation are not considered self-employment earnings for the purposes of Keogh plan deductions. The court ruled that treating earnings as self-employment income for Keogh purposes but not for Self-Employed Employment Contribution Act purposes is not appropriate. The taxpayers argued to be treated like partnerships and sole proprietors, which are allowed to deduct contributions made to Keogh plans.

---

Management fee to S corporation shareholder-officer is FICA wages

Article Abstract:

The IRS's ruling in Technical Advice Memorandum 9530005 is consistent with its position that payments from S corporations to their shareholders for services rendered are subject to FICA taxes. In the ruling, the taxpayer argued that he was self-employed. While income to a partner from a partnership is considered self-employment income, income paid to an S corporation shareholder is not because the corporation is a distinct entity separate from the shareholders. The IRS noted that such payments will not be considered wages if the shareholder provides few or no services.

Stockholders, Payroll tax

---

Patterson v. Shumate & Keogh plans: should the retirement assets of a self-employed individual be included in the individual's bankruptcy estate?

Article Abstract:

The US Supreme Court's ruling in Patterson v. Shumate has created uncertainty because the Court limited its bankruptcy exclusion of retirement plan assets to assets held in qualified plans under the Employee Retirement Income Security Act (ERISA). Keogh plans are governed by IRC rules similar to the ERISA provisions for other plans. The Patterson ruling excluding retirement assets from the bankruptcy estate of debtors should be extended to Keogh plans to resolve the uncertainty that has arisen since Patterson.

Bankruptcy estates

Similar abstracts:

• Abstracts: An ounce of prevention. The Federal Reserve and investment policies for insurers
• Abstracts: Companies still grapple with safe-harbor issues; corporations should remain wary of making predictions despite Reform Act protection
• Abstracts: Ombudspersons and the limits of the general counsel's authority under the National Labor Relations Act: an open letter to Fred Feinstein
• Abstracts: Rethinking HIV counseling and testing. Can access to care for people living with HIV be expanded? Community planning for HIV prevention: findings from the first year

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.