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Lisa;

Will the webcast address the wages/compensation compliance issue and potential penalties?

I know so many who have become S Corp just to avoid SE taxes and the IRS doesn't seem to care as many have been doing it for years, it has cause a rush. also;

Do you know where information about this issue can be located and its in one place and easy to read and understand?

Thank you.

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Hi Jim,
We will address officer compensation in the Webcast.  Here is an article on the topic:  http://www.huddlestontaxcpas.com/self-employed-tax-guide/reasonable....  There are a number of articles on tax issues for the self employed at http://www.huddlestontaxcpas.com/self-employed-tax-guide/

Hi Jim,

I share your concerns and those that you know, that are indulging in this practice, are playing with fire.  The penalties and fines they will incur if audited will get their attention.  As this article notes, nothing on line 7 makes an easy audit.

 Please ck out the following article:  http://taxes.about.com/od/scorporations/qt/reasonable_comp.htm

It describes this practice as one of the flags, and in some parts of the country this is a focus of audits. It also goes over what the IRS describes as an acceptable salary. 

I explain to  my clients, they are in a partnership with the IRS, whether they like it or not.  Audits have been up significantly in the last year.

One more.... From the IRS

http://www.irs.gov/newsroom/article/O%2C%Cid=200293%COO.html

irs.gov....  "Wage compensation for S Corporation Officers"

Good luck!

 

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