*** S-Corp Reasonable Compensation *** The Government Accountability Office (GAO) recently released a report that 13% of S-Corporations paid inadequate wages to shareholder-employees. While 13% doesnt sound like a large number, this resulted in an estimated $23.6 BILLION in underpaid compensation. If all of the $23.6 billion was subject to Social Security & Medicare (FICA) tax, that would equate to approx. $3.6 BILLION in uncollected FICA taxes. Even with a budget cuts, IRS plans to take closer look at small businesses and S-Corp officer compensation. Let me help you determine what your reasonable salary be with a detailed interview and comprehensive report that would stand up in an audit and against IRS in court.
Posted on: Fri, 02 Jan 2015 12:41:29 +0000