From Carol McAtee’s CPA firm in St. Petersburg, FL –If you operate your business as an S Corporation and pay yourself a salary as an owner-employee, you need to be aware of the increased attention the IRS is giving to the amount of your salary from the S Corporation. The IRS believes that S Corporation non-compliance is a widespread problem, and is increasing its focus and examination efforts on this type of business structure. Specifically, the IRS believes that many S Corporations tend to underpay wages to shareholders, resulting in underpaid employment taxes for funding Medicare and Social Security.
Contact us at McAtee & Associates if you have any questions regarding taxes and your current S Corporation or if you are considering starting a business and forming an S Corporation.
ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.
