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Self-employment tax for RDP's

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    Self-employment tax for RDP's

    Most of you are probably aware of the bombshell in the new Pub 555 that says that while couples filing married separate in community property states allocate self-employment tax to the spouse earning the income, RDP's and same-sex marriage partners must divide the tax between the partners. As far as I have been able to determine, much of the practitioner community considers this ill-advised, unwarranted, nonsensical, and quite possibly a mistake. The potential consequences are certainly mind-boggling. My question is: What are members of this community doing when it comes up in their own practice? If one complies and then sees it reversed, it will be a bloody nuisance to straighten out the social security.
    Evan Appelman, EA
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