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Determining Reasonable Compensation

The concept of reasonable compensation has always been important in determining adequate compensation for the shareholder/employee of S corporations. The concept has taken on an additional importance with the passage of the new tax law effective January 1, 2018. We can help you determine a defensible calculation of reasonable compensation that can aid in the reduction of unnecessary payroll tax expense and be crucial to obtaining the full 20% tax deduction allowable under the new tax law.The correct calculation of reasonable compensation can also reduce your tax liability when unfiled individual returns have to be filed.

Tax Returns

If you have not filed your tax returns for multiple years, I can help prepare and get the returns filed and
deal with the IRS and state taxing authorities.

However, just as important is that you are compliant with your filing in the future. Compliance means that you file your returns in a timely basis and pay what is owed.

It’s not enough that you only address your current problems and then begin to make the same errors in the future. I help people change their habits.

That’s the hardest part to correct.

This is an integral part of most tax resolution cases.

I can help you.

Substitute For Return

If you don’t file a tax return, the IRS can file one for you based on what’s been reported to them
by different payers. They basically include all of your income but don’t give you the full benefit of deductions.

You then receive an inflated tax bill that includes overstated penalties and interest. You can only correct this return by filing your own return. The longer you wait, the harder it is to get the corrections accepted.

Call me today to discuss.

Professional Practices

I do work for lawyers, dentists, doctors, veterinarians, chiropractors and many other
professional practice businesses. It’s not unusual to fall behind in entity taxes, individual taxes and payroll taxes at the same time.

A coordinated effort must be made to address all three when trying to resolve problems
before things get out of hand. I often work with the client’s attorney, accountant and financial planner. It has to be a coordinated team effort.

Lost Refund

If you are due a refund but don’t file a return, the US Treasury can keep your money if you don’t file within 3 years of the filing deadline.
Enough said.

Do I file a return this year?

The deadline to file your Form 1040 without extension is April 18 this year. You haven’t file a return for multiple years. You have a decision to make. Do I let it slide again this year? The odds of non discovery are not in your favor. The IRS is not the only organization that may request a copy of your return in our increasingly interconnected financial world.

No one can make the decision but you.

I am always available to answer questions and assist you.