Partners' Self-employment Tax
Final Regs. Sec. 301.7701-2 (T.D. 9869) provides that partners in a partnership that owns a disregarded entity (DE) are not the DE's employees for employment tax purposes. Instead, they are subject to self-employment tax.
--Stuart R. Josephs, CPA
Millions More ITINs to Expire in 2019
Nearly 2 million Individual Taxpayer Identification Numbers (ITINs) are set to expire at the end of 2019 as the IRS continues to urge affected taxpayers to submit their renewal applications early to avoid refund delays next year.
Under the Protecting Americans from Tax Hikes Act, ITINs that have not been used on a federal tax return at least once in the last three consecutive years will expire Dec. 31. In addition, ITINs with middle digits 83, 84, 85, 86 or 87 that have not been renewed already also will expire at the end of the year. These affected taxpayers who expect to file a tax return in 2020 must submit a renewal application as soon as possible.