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.

File your personal and small business taxes (Schedule C)