AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
Question I am starting a partnership with an individual(50-50).
we plan to write into the partnership agreement that I will be
paid a certain amount by the partnership and the partnership
will withhold and pay FICA, fit etc and issue me a W-2, reporting this as wages on the partnership tax return. Is this acceptable if we both agree to it.
Answer don,
Thanks for your question.
No, that is not allowed by the IRS. As a partner, you cannot be an employee. You receive a K-1 at the end of the year and pay self-employment taxes on your share of the earnings. You would have to received a "guaranteed payment" that would be reflected on your K-1.
