Monthly Tax Update with Ed Zollars - “Limited Partner, As Such” - Which Partners Qualify for the Exemption from Self-Employment Tax?"
Stay in the know with this monthly tax update series, featuring Ed Zollars, CPA. Each month, Ed breaks down a different federal tax topic so you can stay on top of the changes and provide optimal service to your clients.
THIS MONTH:
Navigate the complex landscape of self-employment tax for limited partners in this crucial 2-hour continuing education course. Gain essential insights into the significant legal controversy surrounding the application of self-employment tax to partners, particularly in light of recent landmark cases like the Tax Court's Soroban Capital Partners decision mandating a “functional analysis” beyond mere state-law status. Understand the high financial stakes involved due to Self-Employment Contributions Act (SECA) taxes and the ongoing uncertainty fueled by the appeal in Sirius Solutions LLLP challenging the Soroban precedent in the Fifth Circuit.
This course will delve into the statutory framework, analyze key court rulings, explore the historical context and regulatory attempts, and provide practical considerations for navigating this unsettled area of tax law, making it vital for CPAs, tax advisors, and legal professionals working with partnerships.
- CPAs and tax professionals
- Get Up-to-date information on a variety of tax topics
- Understanding the Statutory Framework: IRC § 1402(a)(13), the general rules for partner self-employment tax, and the specifics of the limited partner exception.
- The Landmark Soroban Capital Partners Decision: The Tax Court's rejection of state-law determinism and the implementation of the "functional analysis" test.
- The Sirius Solutions Appeal: Analysis of the taxpayer's arguments against the functional analysis in the Fifth Circuit, including the interpretation of "as such" and the relevance of state law.
- Historical Context and Regulatory Limbo: The original intent of the limited partner exception, the 1997 proposed regulations, and the ongoing lack of definitive guidance.
- Practical Implications and Planning Considerations: Navigating the current uncertainty, the role of guaranteed payments, and potential future developments in this critical area of tax law.
Early registration discounts will be added during checkout on all registrations made by 05/16/2025.
2.00 credits
Ed Zollars, CPA
Edward K. Zollars, CPA is in public practice in Phoenix, Arizona as a partner with the firm of Thomas & Zollars & Lynch, Ltd. He has been in practice for over twenty five years, specializing in tax issues for closely held businesses and individuals. Ed has been professionally involved with both tax and technology issues, combing the two disciplines in starting the first tax podcast (Ed Zollars Tax Update, produced weekly dealing with current tax issues. He has been a member of AICPA Tax Division Committees dealing with tax and technology issues, and was the Tax Section's representative on three occasions to the AICPA's Top Ten Technologies project. Ed is also a member of the Phoenix Tax Workshop's Advisory Committee, and currently serves on the Tax Legislation Liaison Committee for the Arizona Society of CPAs.Ed was selected as a Life Member by the Arizona Society of CPAs in May of 2010. Ed is a co-author of the Arizona Income Tax Guide published by the Phoenix Tax Workshop, and has written articles published in Practical Tax Strategies and the Tax Adviser. He has been a frequent contributor to a number of professional tax discussion groups, and served as systems operator on the AICPA's Accountants Forum in the mid 1990s. He has spoken regularly on tax and technology topics since 1996, speaking before conferences sponsored by the AICPA and a number of state society of CPAs.