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.

QuickBooks Self-Employed
For Freelancers and independent Contractors

- Organize your financial data into one central accounting system on the cloud
- Software kept up to date.
- Your data kept secure
- Anytime, anywhere data access.
- Pay your quarterly estimated taxes online.
- Export Schedule C to TurboTax at year-end for faster filing.
- Save up to 50% off QuickBooks Self-Employed. Track every deduction! Start your free trial now!

Have an accounting or bookkeeping question? Email it to me.