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As many of us in the tax and accounting profession know, there’s rarely much good that can come out of the IRS flagging a business owner’s personal tax return for an audit. The faded memories of unreported income and, if the individual is an s-corp owner, their missing or incorrect reasonable compensation calculations is enough …
Do you feel overworked and underpaid, and no matter how many hours you work, you still can’t get ahead? Do you struggle to make and keep boundaries with clients, or feel like you can’t ever say no? If you said “yes” to either of these questions, you have a money leak in your firm that …
What is an S Corp and is it Right for My Business? Read More »
What S Corp Owners Should Know About the Reasonable Compensation Requirement Read More »
With the passing of the IRA22 last year and the ongoing battle over the funds allotted to the IRS in that legislation, there have been numerous updates about how the IRS plans to use whatever funding they do receive. The IRS has been consistent with their intent to use the funding to increase enforcement, particularly …
The Auditors Are Coming: Updates from the IRS on Enforcement Efforts Read More »
With the September and October tax deadlines behind us it’s time to think ahead to the next tax filing season which is really only a few weeks away! As we have all been watching, the IRS is amping up its enforcement of tax laws, specifically those aimed at high net worth business owners. These are …
You are probably aware that taxpayers who own a C Corporation and Subchapter S Corporation who provide services in that corporation are required to take a “reasonable salary.” But what does that mean, exactly? The Treasury Regulations define ‘reasonable compensation’ as “the value that would ordinarily be paid for like services by like enterprises under …
