Jeff 232 Report post Posted January 26, 2007 Was talking with my accountant the other day. I do everything that has to do with the IRS and taxes on the up and up, because in the past I didnt and paid a lot of money for my mistake. Well in our conversation he told me some info that may help some of you folks that are S CORP. He goes to all the internet IRS training stuff to keep up with everything. He said Many S CORPS are going start to get audited in the next 2 years. Dont quote me but he was explaining that many S CORPS officers (you & me) dont take payroll and only take profit or they dont take enough payroll to justify what the company is taking in. Well the IRS doesnt like that, they want their taxes. So they are going to increase their audits and start with many who dont pay in enough. I guess you have to take payroll not just live off the profit. Just something to think about JL Share this post Link to post Share on other sites
R L S 14 Report post Posted January 26, 2007 Iinteresting, I take a payroll check two times a month then bonus out money if there is extra. I thought if you were a corp you had to take a check from the corp? Hope we dont get audited, nothing to hide just dont want it! Share this post Link to post Share on other sites
Beth n Rod 1,279 Report post Posted January 26, 2007 That is why we use an accountant who has been around for many years and is very knowledgeable on the irs and its aims. This will help significantly in any audit situation because all the information is already in the reports. An experienced C.P.A. can help guide you on the Do's and Don'ts of business so you can avoid the flags that trigger the irs audits to begin with. Not to say that they won't have a selective audit but it helps to minimize the necessity for one. Rod!~ Share this post Link to post Share on other sites
Littlefield 65 Report post Posted January 26, 2007 My CPA is saying your payroll should always be 51% or higher of your total cash in to personal. In other words, dividends should never exceed payroll. Share this post Link to post Share on other sites
Scott Stone 604 Report post Posted January 26, 2007 My CPA is saying your payroll should always be 51% or higher of your total cash in to personal. In other words, dividends should never exceed payroll. Ditto that, as for the IRS.. Bring it on. Nothing is declared, unless there is a receipt. We love our accountant. Share this post Link to post Share on other sites
