William Richard Baker, Jr. - Page 5




                                        - 5 -                                         
          deficiency issued by respondent.  In response to interrogatories            
          issued by respondent, petitioner argued that self-employment                
          taxes were voluntary and that he was, therefore, not required to            
          make payment for those taxes.                                               
               It is well established that the obligation to pay self-                
          employment taxes is mandatory so long as the requirements of                
          section 1401 are met.  Eanes v. Commissioner, T.C. Memo. 2000-              
          252; see also United States v. Lee, 455 U.S. 252 (1982); Crouch             
          v. United States, 665 F. Supp. 813 (N.D. Cal. 1987); Tyng v.                
          Commissioner, T.C. Memo. 1985-399, affd. without published                  
          opinion 809 F.2d 930 (D.C. Cir. 1987). In Eanes, this Court                 
          rejected a taxpayer’s argument that the self-employment tax was a           
          voluntary “contribution”.  Id.  We also stated:                             
               Self-employment tax is assessed and collected as part                  
               of the income tax, must be included in computing any                   
               income tax deficiency or overpayment for the applicable                
               tax period, and must be taken into account for                         
               estimated tax purposes.  See sec. 1.1401-1(a), Income                  
               Tax Regs.                                                              
          Petitioner has a mandatory obligation to pay self-employment                
          taxes if the requirements of section 1401 are met.  A genuine               
          issue of material fact is not presented with respect to the                 
          voluntariness of the self-employment tax.                                   
               Section 1401(a) and (b) imposes a percentage tax on self-              
          employment income of every individual for the benefit of old age,           
          survivors, disability insurance, and hospital insurance.  Self-             
          employment income is defined as:  “the net earnings from self-              





Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011