The IRS requires that a person or entity possessing an IRS employer identification number ("EIN") has 60 days in which to report a change in its "responsible party" designation using an IRS Form 8822-B. Further, beginning May 13, 2019, the "responsible party" can no longer be an entity but must be an individual. Currently, the IRS is not imposing penalties for failure to notify it of this change, but the IRS has cautioned that an applicant may not receive a notice of deficiency or notice of demand for tax if it does not have a current "responsible party" designation on file.
Distributions from an IRA are normally taxable, but like so many things in tax law, there are exceptions. One such exception permits a taxpayer to transfer or "rollover" money from one IRA to another IRA, provided it is accomplished within 60 days of the initial distribution. There is, of course, an exception to the exception. A tax free rollover can only be performed once per year.
The self-employment tax is an additional tax levied on self-employment income under the Self-Employment Contribution Act (SECA). The self-employment tax is comprised of a 12.4% Social Security tax and a 2.9% Medicare tax, for a combined 15.3% tax. The self-employment tax is in lieu of the tax on wages under the Federal Insurance Contributions Act (FICA), pursuant to which an employer is required to withhold Social Security and Medicare taxes from wages paid to the employee and to pay the employer's own share of these taxes.