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Printable Form 4876-A San Diego California: What You Should Know

Guidance on Taxpayers Who Cannot Afford Individual Audits for Form 941-XO 3.11.17.1 General  If you are a person living in the U.S., and you had a net income at least 1 million for a particular calendar year, you may be subject to the self-employment tax (SEA) for that tax year (and any remaining tax for the remainder of that tax year if the SEA was paid). However, if you are a corporation, you may reduce your self-employment tax by filing a Form 941-X. As the IRS has explained, many taxpayers have income for the past calendar year that falls within the self-employment tax exclusion. You have the option to take advantage of this and your self-employment tax would have to be 0 because of the tax preference rules. See IRS Comment: 5.4.4.2, Self-Employment Tax Exclusion, for more information. Generally, if you are a corporation instead of a person, you may choose to take advantage of either option.

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