Court Ruling on CRP Land Puts Question to Self Employment Tax
U. S. Tax Court says non-farmer Texas resident must pay self-employment tax on Conservation Reserve Program land inherited in South Dakota. A non-farmer’s Conservation Reserve Program income can be hit with self-employment tax, said U.S. Tax Court in a ruling last year, which involved a Texas resident who inherited farm land in South Dakota. “Since the late 1980s, the IRS and the courts have issued various rulings, advices, notices and opinions concerning the issue of whether CRP payments are subject to self-employment tax,” says Roger McEowen, Leonard Dolezal Professor of Agricultural Law at Iowa State University. “Until 2003, the IRS …