S corporation Under-compensation

The IRS continues to attack S corporation distributions as a method of avoiding payment of employment taxes and has been successful in a recent case.  The IRS succeeded in reclassifying distributions as salary resulting in underpayment by the corporation of employment taxes.  See Watson, P.C. v U.S. 109 AFTR 2d

© 2012 Parsonage Vandenack Williams LLC

For more information, contact info@pvwlaw.com

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