Is this in fact Self-Employment Income?

[Sherill]

Client received 1099, Non-Employee Compensation, amt of $6,700, for being a
Bank Board of Directors in 2008.
The IRS wants client to report $6700 as Self-Employment income tax.

Client has always reported Board of Directors Income on Line 21 when he has prepared his own 1040 Individual Income Tax. Never questioned by IRS.

This year, 2008, the IRS wants him to claim amt $6,700 as Self-employment Income?
In TTB 5-23 anything over $400 should be SE.

Is this SE Income as being an Independent Contractor?
Thank you for your professionalism!

[solomon]

Yes, a Director does require Sch C.

From §31.3121(d)-1(b):

A director of a corporation in his capacity as such is not an employee of the corporation.

[Gene V]

Client received 1099, Non-Employee Compensation, amt of $6,700, for being a
Bank Board of Directors in 2008.
The IRS wants client to report $6700 as Self-Employment income tax.

Client has always reported Board of Directors Income on Line 21 when he has prepared his own 1040 Individual Income Tax. Never questioned by IRS.

This year, 2008, the IRS wants him to claim amt $6,700 as Self-employment Income?
In TTB 5-23 anything over $400 should be SE.

Is this SE Income as being an Independent Contractor?
Thank you for your professionalism!

Also See TTB 5-24
Corporate director fees -----Subject to SE tax.