S corporation Under-compensation

Dean S Corporations, ,

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

Leave a Reply

Fill in your details below or click an icon to log in:

Gravatar
WordPress.com Logo

You are commenting using your WordPress.com account. ( Log Out /  Change )

Google photo

You are commenting using your Google account. ( Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. ( Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. ( Log Out /  Change )

Cancel

Connecting to %s