Ezel / IRS Rulings / 1044007
Chief Counsel Advice 1044007 Released November 5, 2010 Advice

CCA 1044007: A taxpayer may obtain a refund after an independent-contractor finding

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This page covers one taxpayer's ruling from 2010, 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 2010
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 resolved one taxpayer's situation on its specific facts, 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

Chief Counsel Advice states that a taxpayer may be able to obtain a refund after an independent-contractor finding if substantial expenses are allowable on Schedule C. The advice notes that the income tax savings from those deductions may offset the difference between self-employment tax under SECA and employment tax under FICA.

Ruling snapshot

  • Question: Could allowable Schedule C expenses support a refund after an independent-contractor finding?
  • Outcome: Advice given
  • Key authorities: IRC § 3121

Full text (IRS public release)

ID: CCA_2010101313441241 Number: 201044007
Release Date: 11/5/2010
Office: -----------------------------
UILC: 3121.04-00

From: ---------------
Sent: Wednesday, October 13, 2010 1:44:14 PM
To: ---------------
Cc:
Subject: FW: IRM 4.23.13 Protective Claims

On a separate note--------------------------------------------------------------------- it is possible for a TP to get a
refund after an IC finding if they have substantial expenses that are now allowed on Sch C (the income
tax savings from the expense deductions may offset the difference between SECA and FICA.)

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