Ezel / IRS Rulings / 200917037

CCA 200917037: Section 475 exception informed self-employment tax treatment

Number
200917037
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Net Earnings From Self-Employment
Topics
Other topics
Code sections
§ 475, § 1402
Ruling dated
March 24, 2009
Publicly released
April 24, 2009
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2009, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2009
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

The IRS considered an unspecified question about net earnings from self-employment. The writer pointed to section 475(f)(1)(D), which states that section 475(d)(3) does not apply under the preceding sentence when applying section 1402. The advice also noted that an earlier IRS significant-advice memorandum briefly discussed the question. The writer copied a branch employee responsible for self-employment tax issues for any additional input.

Ruling snapshot

  • Question: How did section 475 affect the unspecified self-employment tax issue?
  • Outcome: Advice given: section 475(f)(1)(D) appeared to answer the question, subject to possible branch input.
  • Key authorities: IRC §§ 475(f)(1)(D), 1402.

Full text (IRS public release)

ID: CCA_2009032414072932 Number: 200917037
Release Date: 4/24/2009
Office: -------------
UILC: 1402.01-00

From: --------------------
Sent: Tuesday, March 24, 2009 2:07:36 PM
To: -------------------------
Cc: ---------------
Subject: RE: 1402 question

---------

It seems to me that section 475(f)(1)(D) may answer your question. It says that "subsection (d)(3) shall not apply under the preceding sentence for purposes of applying sections 1402..." Your question is also discussed briefly in a Non-docketed Significant Advice Review memorandum (1999 IRS NSAR 10649 on Westlaw).

I am copying ------------------- --------of the branch responsible for self-employment tax issues in case she has anything to add.

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