BDO USA: Claiming an Exemption from Self-employment Tax as a Limited Partner? Think Twice (November 29, 2022)

BDO USA has published an article, “Claiming an Exemption from Self-employment Tax as a Limited Partner? Think Twice”, published on BDO USA. The abstract is as follows:

Limited partners claiming an exemption from Self-Employment Contributions Act (SECA) taxes may be putting themselves at risk – in certain circumstances. In fact, more recently, it has become even riskier. Why? Because the rules are unclear, and the IRS has prioritized this issue in examinations and successfully challenged exemption claims in court.

“Unfortunately, neither the tax code nor regulations define the term ‘limited partner’,” says Neal Weber, BDO Managing Director, National Tax Office – Partnerships.

BDO shares insights on the current state of the law and potential risks to limited partners who are considering claiming SECA tax exemptions.

Click here to read BDO USA’s summary of “Claiming an Exemption from Self-employment Tax as a Limited Partner? Think Twice”

Posted by Marin Larkin, Associate Editor, Wealth Strategies Journal.