IRS Further Clarifies That Tax “Partners” Are Self-Employed and Not Employees

IRS Further Clarifies That Tax “Partners” Are Self-Employed and Not Employees

      In ECC 201916004 (April 19, 2019), clarifying certain proposed regulations dealing with Certified Professional Employer Organizations (proposed Treas. Reg. § 301.7705-1), the Service again made the point that a person who is a member in an LLC taxed under subchapter K and is therefore a “partner” under the tax code may not as well be an employee of the entity (barring extraordinary facts as identified in an example therein).