This may be old news.....
In a nutshell, officer worked for local sheriff's department and had income from additional "security" work et al. His employer did have some knowledge/approval over off-duty work performed by the officers, mainly to ensure no conflicts of interest and other similar operational issues. Payments for such work were reported on Forms 1099-MISC.
Officer reported the income, but paid no SE tax on said income. His position was he indirectly received additional "wages" through his employer, and therefore owed no SE tax on that income.
This court has ruled otherwise and stated he must pay the SE tax..
"...when taken as a whole the facts establish that petitioner was self-employed with respect to the off-duty services that he provided to third-party entities. Accordingly, we hold that the earnings in dispute are earnings from self-employment, subject to the tax imposed by section 1401...."
FE
In a nutshell, officer worked for local sheriff's department and had income from additional "security" work et al. His employer did have some knowledge/approval over off-duty work performed by the officers, mainly to ensure no conflicts of interest and other similar operational issues. Payments for such work were reported on Forms 1099-MISC.
Officer reported the income, but paid no SE tax on said income. His position was he indirectly received additional "wages" through his employer, and therefore owed no SE tax on that income.
This court has ruled otherwise and stated he must pay the SE tax..
"...when taken as a whole the facts establish that petitioner was self-employed with respect to the off-duty services that he provided to third-party entities. Accordingly, we hold that the earnings in dispute are earnings from self-employment, subject to the tax imposed by section 1401...."
FE
Comment