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Dear Client, If you are a shareholder of a Sub Chapter S-Corporation, it is important for you to be aware of a recent court case regarding the payment of reasonable compensation for active shareholders in the conduct of their business. Please read the attached article and consider how it impacts the compensation policy within your company. Based…
Watson, P.C. v. U.S., (CA8 02/21/12) 109 AFTR 2d ¶ 2012-483 The Court of Appeals for the Eighth Circuit, affirming a district court, has concluded that an S corporation shareholder-employee’s $24,000 salary in 2002 and 2003 was unreasonably low. As a result, it allowed the IRS to reclassify as salary over $67,000 in dividend payments…
Dear Client, Following is a list of moving-related expenses you can deduct if your moving is related to changing jobs: You can deduct the expenses for one trip (for you and your family) to the new home and for moving your furniture and household goods (see below), if you satisfy the distance and period-of-employment requirements…
