Business Interruption Insurance Proceeds
The IRS does not agree with the Tax Court over whether business interruption insurance proceeds must be reported as earnings subject to self-employment tax.
In a case involving a grocer, the Tax Court said the insurance payments for lost earnings were not subject to self-employment because the payments were not for actual services.
The IRS disagrees. They say, the income would have been earned had the operations not been interrupted.
- Return to the Business Taxes Table of Contents to find related links