Tag: business

Reasonable Compensation in Wages an S Corp Stockholder

Article Highlights:S Corporation CompensationReasonable CompensationFactors Determining ReasonablenessIn the Spotlight199A DeductionS corporation compensation requirements are often misunderstood and abused by owner-shareholders. An S corporation is a type of business structure in which the business does not pay income tax at the corporate level and instead distributes (passes through) the income, gains, losses, and deductions to the […]

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Start Off on the Right Foot for the 2023 Tax Year

Article Highlights:W-4 UpdatesW-9 CollectionEstimated Tax PaymentsCharitable ContributionsRequired Minimum DistributionsGiftingRetirement-Plan ContributionsBeneficiariesReasonable CompensationBusiness-Vehicle MileageCollege-Tuition PlansIndividuals and small businesses should consider various ways of starting off on the right foot for the 2023 tax year. W-4 Updates – If you are employed, then your employer takes the information from your Internal Revenue Service (IRS) Form W-4 and applies it […]

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Important Info for S-Corp Shareholders and Partnership Partners

Article Highlights:Schedule K-2 and K-3 Filing RequirementsBackgroundFast Forward to the PresentDomestic Entity K-2/K-3 Filing ExceptionPartner or Shareholder NotificationWhere You Play a RoleForm 1116 – Foreign Tax Credit Filing ExceptionForm 1116 Exception Entity NotificationThere is an important issue related to filing the 2022 S-corporation (Form 1120-S) and partnership (Form 1065) tax returns that requires the cooperation […]

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