IRS Plans to Revisit Application of SECA Tax to LLC Members
The rules regarding the application of self-employement taxes to LLC members contains many gray areas for those members that are not active in the operation of the business. It has been this way since 1997 when the concept of LLC’s was new and the initial guidance was issued. In a recent Priority Guidance Plan for 2014-2015, the IRS mentions this issue as a topic it plans to address in the future.
