Brach Eichler Talks | Law & Legal Insights from Lawyers
In this episode, Brach Eichler attorneys discuss an important IRS reminder for Subchapter S corporations and what business owners, especially those in the healthcare field, should know about salary and payroll tax requirements. The conversation covers the IRS CP261 Notice, the requirement to pay shareholder-employees “reasonable compensation,” and the risks of underpaying salary in favor of distributions. The episode also highlights why proper payroll practices and careful tracking of stock and debt basis matter for S Corp owners. Whether forming a new business entity or currently operating as an S Corporation, this episode offers helpful insight into an area that can create costly tax issues if handled incorrectly. If you are contemplating the formation of a new business entity or are currently an employee/owner of a Subchapter S Corporation, do not hesitate to contact David Ritter, Stuart Gladstone, Bob Kosicki or Cheryl Ritter for guidance in dealing with the nuances of the operation. The need to pay a “reasonable salary” to the owner-employee is but one. For more information or assistance, please contact: David J. Ritter, Esq. [https://url.us.m.mimecastprotect.com/s/59X5CyP6xkf7WmNAs4TxIxDHCc?domain=t.e2ma.net], Member and Chair, Tax Practice [https://url.us.m.mimecastprotect.com/s/Q5biCzpByltGBNROImUXI95Z9Z?domain=t.e2ma.net], at dritter@bracheichler.com [dritter@bracheichler.com] or 973-403-3117 Stuart M. Gladstone, Esq. [https://url.us.m.mimecastprotect.com/s/WVycCADQgOUZoJ9GSocRIGTCRn?domain=t.e2ma.net], Member, Tax Practice [https://url.us.m.mimecastprotect.com/s/OfBICBB8jEHDmJVzCZfKI2EqTE?domain=t.e2ma.net], at sgladstone@bracheichler.com [sgladstone@bracheichler.com] or 973-403-3109 Robert A. Kosicki, Esq. [https://url.us.m.mimecastprotect.com/s/OtiDCDkYlEfomrBDsgh8IjOsRE?domain=t.e2ma.net], Counsel, Tax Practice [https://url.us.m.mimecastprotect.com/s/X5VRCERZmQSlGoWkt8iQI7GvRA?domain=t.e2ma.net], at rkosicki@bracheichler.com [rkosicki@bracheichler.com] or 973-403-3122 Cheryl L. Ritter, Esq. [https://url.us.m.mimecastprotect.com/s/0avQCG6YoKtBlZJ2txsJIBjhLm?domain=t.e2ma.net], Counsel, Tax Practice [https://url.us.m.mimecastprotect.com/s/hNy3CJ6YrXtBzL8gtZtvIyFBxt?domain=t.e2ma.net], at critter@bracheichler.com [critter@bracheichler.com] or 973-364-8307 *This is intended to provide general information, not legal advice. Please contact the authors if you need specific advice.
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