Theses, Dissertations, and Capstone Projects

Year of Award

1993

Degree

Master of Science in Taxation (MST)

College

College of Business & Professional Studies

Degree Program

Taxation

Department

Business Administration

Keywords

business, spouse, husband, wife, tax, taxpayers, employment, IRS, Internal Revenue Service

Abstract

This paper deals with the tax effects of filing one Schedule C and two Schedule SEs for a husband and wife. The purpose is to show how the taxpayers can pay less Self Employment Tax and at the same time be able to contribute to the Social Security "pool" for both spouses.

How can a husband and wife split income from a business without filing a partnership return? Can this be accomplished if the business was reported for only one spouse in prior years? Will such reporting have a negative effect upon one spouse for future social security benefits? Are there other advantages of reporting split income for husband and wife? Does it enable them to invest a larger amount in retirement plans?

Before many of these questions can be addressed, research into the Code and Regulations must be performed. Court cases will also be examined for supporting factors.

Internal Revenue Service does not permit evasion of taxes, however avoidance of taxes is permitted. Thus I want to attempt to avoid taxes rather than evade taxes. There can be a fine line between avoidance and evasion. Perhaps the original intent of a business organization can even be a determining factor.

Tax planning is an important tool to be used for saving taxes. This paper is a tax planning instrument to save Self Employment Tax for a husband and wife with a business venture.

Document Type

Restricted Thesis

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Creative Commons Attribution-No Derivative Works 4.0 License
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