Last week Forbes uncovered two previously unreported lawsuits in US tax court which saw thriller writer Karin Slaughter square off against the Internal Revenue Service. While the suits themselves are interesting on their own, they are particularly relevant for authors with respect to the classification of book royalties as self-employment income, something the IRS has held for more than six decades. The first suit, which Slaughter settled with the IRS in July, covered the 2008 tax year, for which the IRS “had been demanding $146,155 in tax and a $29,231 penalty on top of the $1.14 million [Slaughter] originally paid.” […]
