Opinions expressed by Entrepreneur contributors are their own.
Concerned that some owners of S corporations aren't payingtheir fair share of business taxes, the IRS has kicked off anaggressive campaign to identify potential abuses among S corps.
The IRS has recently started to examine 5,000 randomly selectedS corp returns from the 2003 and 2004 tax years. A chief concern:whether some S corp owners are skimping on their salaries--orskipping them altogether--in favor of a larger dividenddistribution, which isn't subject to self-employment taxes."Historically, that's what people have tried to do, andthat's one of the reasons the IRS is conducting theseaudits," says Deborah Schenk, Grossman Professor of Taxationat the New York University School of Law.
Continue reading this article — and all of our other premium content with Entrepreneur+
For just $5, you can get unlimited access to all Entrepreneur’s premium content. You’ll find:
- Digestible insight on how to be a better entrepreneur and leader
- Lessons for starting and growing a business from our expert network of CEOs and founders
- Meaningful content to help you make sharper decisions
- Business and life hacks to help you stay ahead of the curve
