I know what you’re going to say, “If I can’t trust what I read on the Internet, why should I continue reading this blog”? The answer is simple. You should continue reading because you will find a lot of helpful information. The Internet is full of great fact and figures that can help us find answers to many of our tax research questions. The problem is that there is also old information, misstated facts, and even information that is just plain wrong. The question you should be asking is how do we filter out the good information from the bad?
Case in point. There is an IRS memo floating around that says an off duty police officer getting paid by a school district to direct traffic wouldn’t be subject to self-employment tax on those earnings.
There are a few potential problems with the IRS Memo and whenever we are doing tax research on the web we should be asking ourselves the following question. (1) Do we know the information is current? (2) Do we know that the information is accurate? (3) Do we know the information is relevent?(4) Does the information set any legal precedents to my clients fact pattern? I’m not suggesting that you not use the Internet or this blog to find information or to stay up to date on current events. I’m suggesting that you be careful with the information that you find and to answer the above questions before relying on the information.
Oh, and as far as the memo, I can’t find it anywhere in our extensive tax library.