Tax Guru-Ker$tetter Letter

Wednesday, December 10, 2003

Protecting the Integrity of Our Tax System - The comment about the need for a probability of a tax pro's position having at least a 33% chance of success is accurate. However, the idea of who is the arbiter of the odds is up for grabs. A guess as to whether or not a position has greater than a 33% chance of succeeding is as subjective as anything can be in most areas. Where it does have application is with the standard idiotic tax protestor arguments, such as taxes are voluntary, income is all tax free, or the 16th Amendment is invalid. Those are obviously well below the 33% threshold.

The issue of SE tax on LLCs is still well above those odds, so those of us who have been considering it voluntary aren't crossing the line. While it is a controversial topic, with those who side with IRS claiming that LLC income should always be subjected to the 15.3% SE tax, those of us on the other side have several cases where IRS has accepted our method of reporting it. Until a new law is enacted mandating SE tax on LLC income, I will continue to predict that my position on this matter has a 100% chance of prevailing.
- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 12/10/2003 05:02:00 PM Send this post: