July 26, 2019

Medicare tax and self-employment





The interplay between the additional 0.9% Medicare tax, self-employment taxes, assessment periods and deficiency procedures is highlighted in a new Program Manager Technical Advice (PMTA). Specifically discussed are 1) whether the additional Medicare tax on self-employment income is subject to the deficiency procedures, 2) whether the additional Medicare tax on wages is subject to the deficiency procedures, 3) when the limitations period on assessment of additional Medicare tax begins to run, and 4) what form should be used to extend the limitations period for assessing the additional Medicare tax on wages. (PMTA 2019-006)