- 22 -
(A) by an employee". (Emphasis added.) Since petitioners were
not employees, they cannot have received wages from Allstate.
Again, petitioners have misread the statute.
Other than section 6521, there is no authority for
offsetting SECA taxes with erroneously paid FICA taxes. With
certain exceptions not relevant to this case, section 6521
provides for the mitigation of the effect of the expiration of
the period of limitations in certain cases in which
self-employment income is incorrectly classified as wages and
FICA taxes are paid (the case at bar), or wages are incorrectly
classified as self-employment income and self-employment taxes
are paid. If the correction of the error would require the
refund or credit of one tax and the assessment of the other, and
if the period of limitations has expired as to only one of the
taxes in question, then the one tax may be credited against the
other despite the expiration of the period of limitations.
Section 6521(a) provides:
(a) Self-Employment Tax and Tax on Wages.--In the
case of the tax imposed by chapter 2 (relating to tax
on self-employment income) and the tax imposed by
section 3101 (relating to tax on employees under the
Federal Insurance Contributions Act)--
(1) If an amount is erroneously treated
as self-employment income, or if an amount is
erroneously treated as wages, and
(2) If the correction of the error would
require an assessment of one such tax and the
refund or credit of the other tax, and
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011