Any officer of a corporation, including an S corporation, is an employee of the corporation for federal employment tax purposes. S corporations are not to attempt to avoid payment of employment taxes by having the officers treat their compensation as cash distributions, payments of personal expenses, or loans rather than wages. The fact that an officer is also a shareholder does NOT change the requirement that payments to the corporate officer must be treated as wages. The courts have consistently held that S corporation officer/share-holders who both:
You have several options when it comes to paying overdue taxes. If you need more time, you may qualify for a short-term extension of time to pay or a monthly installment payment agreement. If those options will not work, you may want to consider an Offer in Compromise. Under the IRS OIC program, you may be able to settle your tax debt for less than the full amount owed.
The following options are available to help you pay your tax debt:
Award reflects company’s consistently high level of customer service
Jennifer A. Harris CPA, Inc. has earned the service industry’s coveted Angie’s List Super Service Award, reflecting an exemplary year of service provided to members of the local services marketplace and consumer review site in 2014.
“Only about 5 percent of the Accounting /Tax Consulting companies in Indianapolis area have performed so consistently well enough to earn our Super Service Award,” said Angie’s List Founder Angie Hicks. “It’s a really high standard.”
Possibly the best tax resource on the internet, the IRS website has lots of articles and information, FAQs, links to forms, and other useful tax-related resources for businesses and individuals.
The following are links we thought you may find useful. These links have no relation to Jennifer A. Harris CPA & Associates, Inc. and we have no responsibility for their content. Please give us a call with any questions that you may have or for your legal and tax needs.
With the end of the year, the Internal Revenue Service has released its series of tax updates for 2014 and made a few other announcements.
The most exciting announcement is a joint decision from the Treasury Department and the IRS on flexible savings accounts.
Here we go with a couple of highlights.
A credit report contains information on where you work and live, how you pay your bills, and whether you have been sued, arrested, or filed for bankruptcy. Consumer Reporting Agencies (CRAs) gather this information and sell it to creditors, employers, insurers, and others. The most common type of CRA is the credit bureau.
The three major national credit bureaus are Equifax, Experian, and TransUnion. Past due obligations that have previously been reported to these credit bureaus will NOT be automatically taken off your credit report after you satisfy your debt. It is up to you to get it removed by contacting these agencies via mail or by using their provided link on their website and submit a dispute form with proof your debt has been satisfied; otherwise, it will remain on your credit report forever.
The most tax effective ways to deduct your medical expenses as an S-Corporation Owner.
As an owner of an s-corp and an employee of the s-corp there are several ways to deduct your medical expenses.
If you run medical bills through the business they are a personal dividend expense that can be deducted on schedule A of your personal return. All medical bills on schedule A are subject to the 10% limitation of your adjusted gross income. Meaning you can only deduct the amount OVER 10% of your adjusted gross income
You must keep records so that you can prepare a complete and accurate income tax return. The law does not require any special form of records. However, you should keep all receipts, canceled checks or other proof of payment, and any other records to support any deductions or credits you claim.
If you file a claim for refund, you must be able to prove by your records that you have overpaid your tax.
This part does not discuss the records you should keep when operating a business. For information on business records, see Publication 583, Starting a Business and Keeping Records.
A credit report contains information on where you work and live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy. Consumer Reporting Agencies (CRAs) gather this information and sell it to creditors, employers, insurers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. The federal Fair Credit Reporting Act (FCRA) promotes the accuracy and privacy of information in the files of the nation’s credit reporting.
