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#5
05-06-2005, 05:37 PM
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 Re: Small % of S corp profit paid as wages - problematic? Harlan Lunsford wrote: - quote - > Frederick Jorden wrote:
The guys who ran the stills have moved onto more profitable> > That is why they call it the BAT. The middle name is > > alcohol. > What? that branch still exists? I thought they went OB > (out of business) > > Most folks limit themselves to the part of the code > > that deals with income. There are other parts for Estate > > and Gift taxes and others for Alcohol, Tobacco. The > > Virginia ABC stores have tax stamped Whit Lightning. A part > > of VA was recently the capital of shine operations. I think > > most have moved on to meth, pot and oxi contin. > Oh yeah, I've seen that last one advertised on tv I think. > Buy a big bottle and get a small bottle free. Makes the > white things whiter, something like that. What's that got > to do with meth.. a phines, and pot? lines of merchandise. You have to remember these folks are decedents of participants in the whiskey rebellion. -- Frederick E. Jorden http://Tax-Accounting-Payroll.com 7825 Midlothian Tpk - 207 Richmond, VA 23235-5247 EMAIL knowtax[at]bigfoot.com (804) 320-6210 FAX (804) 320-6211 << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
05-04-2005, 06:20 AM
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| Re: Small % of S corp profit paid as wages - problematic? Frederick Jorden wrote: - quote - > That is why they call it the BAT. The middle name is
What? that branch still exists? I thought they went OB> alcohol. (out of business) - quote - > Most folks limit themselves to the part of the code
Oh yeah, I've seen that last one advertised on tv I think.> that deals with income. There are other parts for Estate > and Gift taxes and others for Alcohol, Tobacco. The > Virginia ABC stores have tax stamped Whit Lightning. A part > of VA was recently the capital of shine operations. I think > most have moved on to meth, pot and oxi contin. Buy a big bottle and get a small bottle free. Makes the white things whiter, something like that. What's that got to do with meth.. a phines, and pot? ChEAr$, Harlan Lunsford, EA n LA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
05-03-2005, 08:42 AM
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| Re: Small % of S corp profit paid as wages - problematic? Harlan Lunsford wrote: - quote - > Harlan Lunsford wrote:
That is why they call it the BAT. The middle name is> > Lance Mannion wrote: > > > I noticed on a past return that I only paid 15k as a W2 > > > wage, and 90k on Schedule E for my S corp. I know this > > > does not meet the "reasonableness" test. > > > > > Are my odds of audit greatly increased? > > > Would they just reclassify it all as wage? > > > What would be the penalties? > > Unless the IRS (commonly referred to as "THE IRS", aka > > "THEIRS") has begun an "initiative" recently to target those > > items, your audit chances are slim to none. > > > I would NOT take action now for any past year to correct these > > events, such as filing W2c's and revised 1120S forms, but rather > > take the approach Jesus recommends; "Go and sin no more". > > > ChEAr$, > > Harlan Lunsford, EA n LA > > > In Alabama we subscribe to (1) the Internal Revenue Code, > > and (2) The Ten Commandments, but not necessarily in that > > order. > > Moderator: Harlan, Moonshine is against the IRC. > Pray tell, where in the IRC is there any prohibition against > moonshine? None. Not even sure that the IRC covers such taxes, > BUT, one can make as much moonshine as one wants to, as long as > he pays the tax on it. > Moderator: Do you have any Moonshiners who pay their taxes > Only time I actually drunk moonshine out of a Mason Jar, was > what was bought in Baltimore (Perry Hall actually). It was > produced and bottled in a town 20 miles from my hometown, > and had all the obligatory federal and state tax stamps > affixed thereon. > Moderator: > Harlan, Let us acknowledge that Shine with Tax Stamps is > not the same as Shine for which you pay! Or as this young > woman said after swerling a drink "My Daddy throws away > better stuff than that! alcohol. Most folks limit themselves to the part of the code that deals with income. There are other parts for Estate and Gift taxes and others for Alcohol, Tobacco. The Virginia ABC stores have tax stamped Whit Lightning. A part of VA was recently the capital of shine operations. I think most have moved on to meth, pot and oxi contin. -- Frederick E. Jorden http://Tax-Accounting-Payroll.com 7825 Midlothian Tpk - 207 Richmond, VA 23235-5247 EMAIL knowtax[at]bigfoot.com (804) 320-6210 FAX (804) 320-6211 << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
05-02-2005, 05:15 AM
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| Re: Small % of S corp profit paid as wages - problematic? "Harlan Lunsford" wrote: - quote - > ...
Some time ago, the GAO recommended that IRS do just such an> Unless the IRS...has begun an "initiative" recently to > target those items, your audit chances are slim to none. initiative. They're very easy cases to do; many can be even handled over the phone. Since IRS likes to carefully pick and choose the GAO recommendations it will ignore, I reckon they're following this one. Fred F. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
05-02-2005, 04:56 AM
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| Re: Small % of S corp profit paid as wages - problematic? Harlan Lunsford wrote: - quote - > Lance Mannion wrote:
Pray tell, where in the IRC is there any prohibition against> > I noticed on a past return that I only paid 15k as a W2 > > wage, and 90k on Schedule E for my S corp. I know this > > does not meet the "reasonableness" test. > > > Are my odds of audit greatly increased? > > Would they just reclassify it all as wage? > > What would be the penalties? > Unless the IRS (commonly referred to as "THE IRS", aka > "THEIRS") has begun an "initiative" recently to target those > items, your audit chances are slim to none. > I would NOT take action now for any past year to correct these > events, such as filing W2c's and revised 1120S forms, but rather > take the approach Jesus recommends; "Go and sin no more". > ChEAr$, > Harlan Lunsford, EA n LA > In Alabama we subscribe to (1) the Internal Revenue Code, > and (2) The Ten Commandments, but not necessarily in that > order. > Moderator: Harlan, Moonshine is against the IRC. moonshine? None. Not even sure that the IRC covers such taxes, BUT, one can make as much moonshine as one wants to, as long as he pays the tax on it. Moderator: Do you have any Moonshiners who pay their taxes Only time I actually drunk moonshine out of a Mason Jar, was what was bought in Baltimore (Perry Hall actually). It was produced and bottled in a town 20 miles from my hometown, and had all the obligatory federal and state tax stamps affixed thereon. Moderator: Harlan, Let us acknowledge that Shine with Tax Stamps is not the same as Shine for which you pay! Or as this young woman said after swerling a drink "My Daddy throws away better stuff than that! ChEAr$, Harlan Lunsford << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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04-30-2005, 10:22 PM
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| Re: Small % of S corp profit paid as wages - problematic? Lance Mannion wrote: - quote - > I noticed on a past return that I only paid 15k as a W2
Unless the IRS (commonly referred to as "THE IRS", aka> wage, and 90k on Schedule E for my S corp. I know this > does not meet the "reasonableness" test. > Are my odds of audit greatly increased? > Would they just reclassify it all as wage? > What would be the penalties? "THEIRS") has begun an "initiative" recently to target those items, your audit chances are slim to none. I would NOT take action now for any past year to correct these events, such as filing W2c's and revised 1120S forms, but rather take the approach Jesus recommends; "Go and sin no more". ChEAr$, Harlan Lunsford, EA n LA In Alabama we subscribe to (1) the Internal Revenue Code, and (2) The Ten Commandments, but not necessarily in that order. Moderator: Harlan, Moonshine is against the IRC. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
04-27-2005, 12:57 PM
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| Re: Small % of S corp profit paid as wages - problematic? I noticed on a past return that I only paid 15k as a W2 wage, and 90k on Schedule E for my S corp. I know this does not meet the "reasonableness" test. Are my odds of audit greatly increased? Would they just reclassify it all as wage? What would be the penalties? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| corp, paid, problematic, profit, small, wages |
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