U.S. appeals court decision | KPMG | US

Post-retirement deferred compensation payments to former independent contractor, self-employment tax

U.S. appeals court decision

The U.S. Court of Appeals for the Eleventh Circuit today affirmed a memorandum opinion of the U.S. Tax Court, concluding that deferred compensation payments under corporate plans made after an independent contractor’s retirement from a direct-to- customer cosmetic company were derived from the taxpayer’s former association with the company, thus making the payments subject to self-employment tax.


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The case is: Peterson v. Commissioner, Nos. 14-15773, 14-15774 (11th Cir. May 24, 2016).  Read the Eleventh Circuit’s decision [PDF 422 KB] that includes a dissent.

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