• Jim Payne

S Corp Owner Compensation

S Corp Owners do have to be concerned about the IRS and it’s plans to push the Reasonable Compensation issue. Recently, the IRS issued a memorandum to its agents about keeping challenges from going to Tax Court. Why is this important?

  1. Tax must be paid now. When filing a petition with the Tax Court, taxpayer can avoid paying the tax until the matter is finally resolved.

  2. Leverage Lost. Filing or even the threat of filing a petition with the Tax Court can give taxpayers and their advocates’ leverage to get the appeals agent to settle the dispute favorably.

Read more about it from Paul Hamann at RC Reports. https://rcreports.com/blog/no-tax-court-for-reasonable-compensation-re-characterization/

0 views0 comments

Recent Posts

See All

How to get an IRS Tax Lien Released

I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS. Whenever you owe the IRS on a tax debt, there is an automatic statutory lien created by law. The problem

What to do if you can’t pay the Taxes

I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS. There are three basic options that you can use in dealing with the IRS Collections Division: Payment Pla