Every year the IRS publishes audit statistics showing that it audits S Corporation returns much less frequently than it audits sole proprietorship (schedule C) returns. Consequently, one of the factors business owners and their advisors have traditionally considered before choosing a form of business is the relative likelihood of IRS scrutiny of the business’s tax return.
No surprises there, right?
Well, not so fast. Last week I attended [...]
Tags: IRS Audits · S Corporations · Self-Employed Taxpayers
The National Association for the Self-Employed reports that the recently enacted Healthcare law will have an onerous record-keeping effect on small businesses:
Many of the nation’s entrepreneurs are about to become more familiar with IRS Form 1099. According to a new law set to go into effect in 2012, business owners will be required to submit a Form [...]
Tags: Business Transactions · C Corporations · IRS procedure · S Corporations · Self-Employed Taxpayers
Because of the prolonged recession we expect to see many businesses report losses from their 2009 operations. Losses from S Corporations are deductible on a taxpayer’s Form 1040 only to the extent of the shareholder’s stock plus debt basis.
Tax preparers should maintain the following two worksheets (courtesy Small Business Taxes and Management) for each of their S [...]
Tags: Individual Taxation · S Corporations · Tax Tips
As a general rule, S corporations do not pay taxes, but rather their income is reported and taxed on the individual tax returns of their shareholders. However, a corporation that was originally formed as a C corporation is subject to a built-in gains tax on any appreciation in the value of its assets that arose prior to its conversion to [...]
Tags: S Corporations · Tax Tips
There’s been a lot of crazy talk lately among non-lawyer, non-CPA bloggers accusing lawyers and CPAs of advising their clients to incorporate merely to get additional fees.
These bloggers offer no evidence to support their claims and merely assume that because lawyers and CPAs sometimes incorporate their clients for a fee that they are advising them to incorporate for that [...]
Tags: LLC's · S Corporations · Tax Tips
A majority of American small businesses use the S corporation form of doing business.
This article discusses one of the main tax planning techniques an S corporation can use to save taxes.
The S Corporation and Payments to Shareholder/Employees?
An S corporation is a pass-through entity and does not pay federal income tax.
The net earnings of the S corporation [...]
Tags: S Corporations · Taxes 101
John Tuzynski, IRS Chief of Employment Tax, SB/SE Speciality Programs, has announced that the IRS is expanding efforts to close the $15 billion dollar tax gap in the employment tax area. Specifically, Tuzynski stated that S corporation shareholder wages and the issue of reasonable compensation for services rendered would be a target area.
For a good [...]
Tags: Announcements · S Corporations
According to a study released by the Scapegoat Society titled, Constructive Inquiry Into the Nature and Nuetralizing of Blame, scapegoating is,
[a] hostile social/psychological discrediting routine by which people move blame and responsibility away from themselves and towards a target person or group.
A new GAO study requested by Democrat Senators Byron Dorgan (North Dakota) and Carl Levin [...]
Tags: C Corporations · Legislative Watch · S Corporations
Wall Street Journal – Taxes Blog
