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Law enforcement: is off-duty income subject to SE tax if I received a 1099-MISC instead of w W-2?

Some off-duty details provide a W2 but others provide a 1099-MISC, will I have to pay Self Employment taxes on the 1099 income?
2 Replies

Law enforcement: is off-duty income subject to SE tax if I received a 1099-MISC instead of w W-2?

Most police "details" are subject to both income and self-employment tax. Police who perform outside duties for a private enterprise are exempt from FICA and Medicare if the services performed at the private enterprise were required by City ordinance. [In such a case, the amounts would be reported as miscellaneous income on page 1 of the tax return.]

A police officer may be subject to self-employment tax [and would need to report the income as business income] in other situations. For example, if the police officer is performing security services and is not an employee of the private employer, the income would be subject to self-employment tax. The income would not be wages, as the police officer would not be an employee of the police department.

See INFO 2002-0187 from IRS's Office of Chief Counsel at

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Law enforcement: is off-duty income subject to SE tax if I received a 1099-MISC instead of w W-2?

Why hasn't everyone discovered that 1099MISC or 1099 anything have been deemed by the Tax Court of Appeals as "insufficient evidence" on its own to establish a taxpayer's income? Why do you think there IRS provides a form 1099c (c represents the correction to an issued 1099 from a source) to correct this mistake by the issuer of the 1099. As evidence of these statements I provide the following court citations:
Estate of Gryder v. Commissioner,
T.C. Memo. 1993141,
1993 WL 97427, T.C.M. (CCH)2298,
Portillo v. Commissioner, 988 F.2d 27, 29 (th Cir. 1993) stated a Form 1099 is insufficient to form a rational foundation for the tax assessment against the taxpayers in this case. Thus, while a Form 1099 can serve as the basis for the inception of an IRS investigation, it cannot and does not, on its own, create tax liability or establish how much income the taxpayer actually received."
Daines v. Alcatel, S.A. 10 F. Supp 2d 113, 113 E.D. Washington, 2000
A declaration of Wages on a W-2 doesn't represent a fact unless it can be shown the wages received resulted from performing action dictating a tax liability. Now you ask, what creates a tax liabilty? As stated in the 78 Congressional record of 1943 Vol. 89, Part 2, page 2580 it's the exercise of a excise tax or the job performance based upon a privilege. Look at Title 26 USC Section 3402(p) it requires receiving a payment from a Federal Source.....(read it yourselves and be enlightened by making your paychecks great again). But knowing this doesn't help unless you know which forms to use to correct the lies given to you on your 1099, and W2. Another helpful hint is to look at form 4852. What is the title to this form? Then ask why is the IRS providing such a form? Because, they know the difference between income from Federal sources and Private Enterprises ( WalMart, Boeing, L&M, BestBuy, etc ) while we didn't. Stop accepting lies from others and be the authoritative figure in knowing whether you get a Federal sourced paycheck or one from Private Companies (even Mom and Pop stores). And if IRS challenges you, challenge them back (because your dealing with an ignorant employee acting as a domestic terrorist as described in Title 18 USC section 2331 (b)(I)(II) who needs to be called out and prosecuted. The Taxpayer Bill of Rights guarantees us the right to be informed about what is allegedly being viewed as taxable income.  Stopped being bullied by ignorant government employees when you are "in the right". For your information Statutory references are not arguable in Court by even the best attorneys because the Judges accept it as a fact not subject to interpretation from a Silver Tongued lawyer.
Grasp the fact, that the IRS can start asking you to show proof of your Federally sourced paycheck, and you have no substantial evidence in your defense to win, which will subject you to a CIVPEN of $5,000 for a Frivolous 1040 return. I leave you with the question - do you want to tell the truth on your 1040 or will you continue to accept tax liabilities placed upon you by ignorant employers, and issuers of 1099 's  ultimately exposing you to a Frivolous return CIVPEN of $5,000?

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