Author Topic: QBI and former employer regulations  (Read 294 times)

FullTimeFinance

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QBI and former employer regulations
« on: March 02, 2019, 04:46:16 PM »
Under 199A there is a provision for a three year look back for a contracting business with income from a former employer.  Under my understanding one can rebut this and still claim the deduction if you have sufficient evidence you are not acting in a similar capacity as you were as an employee.  My wife is currently in the position of making a viable rebuttal (last w2 income was in late 2016, 6 month gap in work,  different division, different work deliverables,  contracted for product delivery rather then hourly work, ect.). Anyway my question is does the IRS have a form for this?  Ie how do I rebut.  Is it as simple as a letter along with the filing and a copy of the applicable deliverable contracts for 2018?

Edit: No sooner do I post a question then I find my own answer buried in pub 535
"If you were previously an employee of a
business and continue to provide substantially
the same services to that business after you are
no longer treated as an employee, there is a
presumption that you are providing services as
an employee for purposes of section 199A for
the 3-year period after ceasing to be an employee. You may have to rebut this presumption
upon notice from the IRS by providing records
such as contracts or partnership agreements
that corroborate your status as a non-employee
. "

So it appears they'll contact me if need be.
« Last Edit: March 02, 2019, 06:11:59 PM by FullTimeFinance »