Frustrated-in-I L
Level 9
01-21-2026
05:26 PM
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I have a client filing Schedule C as a pet groomer. The occupation itself qualifies for NTOT. While he receives tips, he does not receive any Forms 1099 or other information statements. I get that he won't qualify for NTOT.
However, the sole employee is his spouse. She is paid on Form W-2. I am getting hung up on the W-2 worksheet, Part 3, Question 10 "I own or have partial ownership in this company". I read the proposed regulation dated 9/22/2025 and to me, it is as clear as mud. So by now, you probably know what I am going to ask: for this purpose, does the spouse have ownership attributed to her?
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