Tag Archives: CPA

IRS continutes to go after S corporations that pay low salaries to owners

Posted on July 19, 2012 by Camron Hoorfar

Many owners of S companies take low salaries so the bulk of the profits are passed through to their own returns free of Social Security and Medicare taxes. IRS and the courts balk at this practice. In a recent case, … Continue reading →

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The IRS continues to feast on S firms that pay very low salaries to owners

Posted on May 31, 2012 by Camron Hoorfar

In many cases, S firm owners take low salaries so they can receive the bulk of the corporation’s profits as dividends, which are not subject to payroll taxes. IRS and the courts balk at this practice. In a recent case, … Continue reading →

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