The IRS continues to turn up the heat on S corporations. For starters, it has completed 1,200 audits of S corp returns for 2003 as part of a program to update audit-selection data. Furthermore, almost 4,000 more S corp returns for 2004 are scheduled for intensive line-by-line examination. In particular, the IRS says it is looking for firms that have paid little or no salary to owner/employees as a way to evade federal employment taxes.
Even one payroll mistake can damage your standing in the office — and possibly your career. It’s important to spot the holes in your employee pay compliance before the feds or state agencies do....Click here to find out more.