Welcome to The Rodeheaver Group’s new blog!  We want to become your source of timely financial information and, further, your go-to adviser on the ever-changing tax and regulatory landscape.   We offer tax, advisory, audit, valuation, and fraud prevention services.  Also, check out our new website and see real people delivering real value. 

     With the well publicized budget deficit issues facing the nation, the IRS is becoming more aggressive in its search to close the “tax gap”.  As Forbes magazine noted, “the Internal Revenue Service has increased the hours it spends auditing small businesses...by 30%, while reducing the time it spends auditing large corporations...by 33%.”[1] [italics added]  One area ripe for both taxpayer abuse and IRS inquiry is characterization of shareholder payments from  Sub-chapter S corporations.  Recent statistics suggest that Sub-S shareholders have figured this out.  “Over the past decade and a half...the salaries of Sub-S owners declined as a percentage of total income from 52% in 1995 to 39% in 2007…  During the same 12 year period, Sub-S income doubled, while salaries increased only 26%.”[2]

     Profits earned by an S-corporation are taxed as income at the individual shareholder level whether actually distributed or not.  S-corp payments that represent dividends escape Social Security and Medicare taxes.  Remuneration for services rendered, however, are considered wages and are taxed accordingly.  The issue facing the small business shareholder is how to properly characterize compensation between dividends and wages.  S-corp shareholders face the danger that the IRS will reclassify dividend distributions as wages subjecting them to both payroll taxes and substantial interest and penalties on their late payment.  Further, loans to shareholders from S-corps carry the same risk.  The IRS may claim that these loans are not at arms length and actually represent taxable income.

     Due to several recent high-profile court cases on this subject, the tax court has highlighted several key factors that determine reasonable compensation:

●     Training and experience;

●     Duties and responsibilities;

●     Time and effort devoted to the business;

●     Dividend history;

●     Payments to non-shareholder employees;

●     Timing and manner of paying bonuses to key people;

●     What comparable businesses pay for similar services;

●     Compensation agreements; and

●     The use of formula to determine compensation.[3]

     With the still unresolved budget issues and an increased IRS emphasis on enforcement, these collection matters are not going away soon.  Call the Rodeheaver Group and see how we can help you safely navigate these issues now before they become a problem in the future.


[1] Zerbe, Dean.  “IRS Audits Small Biz More, Big Guys Less”.  Forbes Magazine Online 4/11/10. 
[2] Sanders, Laura.  “The IRS Targets Income Tricks”.  WSJ Online 1/22/11. 
[3] Walters Kluwer.  “Tax Research Consultant v 402.40”  Anonymous Author.  Copyright 2013.


 


Comments

06/28/2015 1:25am

Like your posts! I’m slowly but surely shifting in that way and would like to add this to what I make annually. Thanks!

Reply
07/09/2015 1:51am

I really appreciate and keep writing

Reply
08/08/2015 4:50am

I am just going through all the topics and being appreciated. Thanks for sharing.

Reply
08/08/2015 5:21am

Its very good and very excellent article. i really enjoyed this post and i hope you will keep posting this kinds of post in future.

Reply

I really appreciate and keep writing

Reply
09/16/2015 3:46pm

This is a post that is very nice and interesting. It's amazing.10

Reply
11/18/2015 4:21am

Excellent post.Thanks for sharing this message.Really,Your blog is not only instructive but useful too.

Reply
01/27/2016 2:22am

Thanks for posting this. I like your post it is worth reading.

Reply
02/01/2016 2:47am

What a really awesome post this is. Truly, one of the best posts I've ever witnessed to see in my whole life. Wow, just keep it up.

Reply
02/04/2016 1:57am

yeah I enjoy reading your short articles, because the details is interesting.

Reply
08/13/2016 7:47am

Interesting article, quite satisfactory.

Reply
09/26/2016 2:51am

Those guidelines additionally worked to become a good way to recognize that other people online have the identical fervor like mine to grasp great deal more around this condition.

Reply

Taxes are the right of government and every person have to pay those important taxes otherwise their property will be sealed and they don’t open until clear all tax dues. That is quite interesting and fabulous sharing about S-corporation earning hope that will help.

Reply
09/28/2016 10:40pm

Those guidelines additionally worked to become a good way to recognize that other people online have the identical fervor like mine to grasp great deal more around this condition.

Reply
10/02/2016 4:20pm

I personally have been quite happy with what I have read here, his articles have enough quality and quite helpful.

Reply
10/04/2016 5:22am

I visit every day a couple of sites and sites to peruse content, be that as it may this site offers highlight based substance.

Reply
10/07/2016 4:22am

Articles of interest can certainly make his readers was, his example as I see in this yard, I was quite helpful at all, thank you sir.

Reply
10/10/2016 12:44am

What's up, each time i used to check blog entries here in the early hours in the break of day, for the reason that i appreciate to pick up information of to an ever increasing extent.c

Reply

Thanks.

Reply

Now Book your Classified,Text, Outdoor and Display Ads by all types of Newspaper through Eumaxindia Advertising Agency in Chennai..

Reply

In the event that somebody needs to be redesigned with most up to date advances then he should be visit this site and be up and coming each day.

Reply
10/26/2016 8:50pm

all the time i used to scrutinize tinier articles that similarly clear their expectation, and that is moreover happening with this bit of making which I am examining here.

Reply
11/02/2016 10:46pm

Hello all, here each individual is sharing these sorts of ability, so it's pleasant to peruse this site, and I used to go to see this online journal day by day.

Reply
11/05/2016 1:30am

A personal and professional Icelandic translation service. High quality translation with exceptional results. Get a quote today!

Reply
11/05/2016 3:30am

Perhaps you could write next articles referring to this article. I desire to read even more things about it!

Reply

Thanks so much for this information. I have to let you know I concur on several of the points you make here and others may require some further review. but I can see your viewpoint.

Reply
11/05/2016 3:46am

It is imperative that we read blog post very carefully. I am already done it and find that this post is really amazing.

Reply
11/05/2016 11:57pm

Another great post, I appreciate all the work you put into this site, helping out others with your fun and creative works.

Reply
11/09/2016 9:18pm

TAP2DO SERVICES is a Chennai based Home Services Company offering House cleaning services,Plumbing services,AC Cleaning services,Repairs & maintenance and more.

Reply
11/11/2016 3:39am

this is good this is great

Reply
11/29/2016 11:26pm

It ingeniously puts the resources and tools available to maximum use. It demonstrates a high level of competency in the skills and knowledge required. It learns and applies new skills quickly.

Reply
11/30/2016 2:32am

It is an excellent job of keeping updated about current developments in this field, and it happily fulfils responsibilities commitment to excellence.

Reply
12/01/2016 6:30am

Advantageously, the article is really the best on this notable topic. I harmonize with your conclusions and will thirstily look forward to your approaching updates.

Reply
12/02/2016 11:44pm

Your article is superb and it most helpful. In my opinion such writing can be very much informative for many scholars.

Reply

3 month payday loans instant cash
personal loans monthly payments
3 month payday loans no credit check
12 month payday loans
loans with no credit check and monthly payments
monthly loans
12 month loans no credit check direct lenders

Reply
12/04/2016 2:10pm

It's not really strange to hear this issue. It's a good opinion indeed.

Reply
12/05/2016 5:07am

Paysaver Payday Loans supplies payday loan, cash loan loans as well as rapid cash solutions for whatever you need.

Reply
12/06/2016 3:52am

It ingeniously puts the resources and tools available to maximum use. It demonstrates a high level of competency in the skills and knowledge required. It learns and applies new skills quickly.

Reply
12/06/2016 4:43am

It ingeniously puts the resources and tools available to maximum use. It demonstrates a high level of competency in the skills and knowledge required. It learns and applies new skills quickly.

Reply
12/06/2016 10:30pm

It focuses on the important points, claims, and information. It discusses the positive aspects of the topic. The author does well, good points makes, and insightful observations.

Reply
12/16/2016 2:43am

Great, what a web journal it is! This site page gives critical information to us, keep it up.

Reply
12/16/2016 3:46am

Welcome, its specific post concerning media print, we as a rule acknowledge media is a shocking wellspring of truths.

Reply
12/17/2016 2:26am

I desired to thank you for this exceptional read!! I absolutely enjoyed every single small little bit of it. I’ve you bookmarked your internet site to look at out the new stuff you post.

Reply
12/21/2016 11:22pm

Surprising video, truly an enchanting quality, this YouTube video touched me an incredible arrangement to the extent parts.

Reply
12/23/2016 4:31am

Simply want to say your article is as surprising. The clarity on your put up is simply cool and I could suppose you're an expert in this subject.

Reply
12/28/2016 9:48am

I liked your article and I hope you will have many entries or more

Reply
01/01/2017 8:03pm

Hello all, here each individual is sharing these sorts of ability, so it's pleasant to peruse this site, and I used to go to see this online journal day by day.

Reply

Without question high determination tape quality consolidates much memory, that is the reason it gives you overhauled quality.

Reply
01/09/2017 10:10pm

I came to this blog and it helped me to add few new points to my knowledge. Actually, I am trying to learn new thing wherever I find. Impressive written blog and valuable information shared here.

Reply

My friends regular visit your blog. Do you know why they visit your blog daily. Because you wrote lot of valuable information in your blog. Your all information is very positive.

Reply
01/12/2017 7:06am

I will recommend my friends to visit this blog.

Reply
01/13/2017 8:37pm

Well done! Nice post! This really helps me to find the answers to my question. Hoping, that you will continue posting articles having lots of useful information. Thanks a lot!

Reply
01/17/2017 4:21am

There might some different approaches according to place or knowledge. Your skills depends on how you got an opportunity and where you have trained. Personal or professional training might distinguish between each other.

Reply
01/17/2017 9:24pm

There might some different approaches according to place or knowledge. Your skills depends on how you got an opportunity and where you have trained. Personal or professional training might distinguish between each other.

Reply

People tired to find a relevant place where they can know real facts and myths about the topic mentioned by author of this blog. I want to help a lot of needy people through this blog to come up at my blog to know the real facts and myths regarding this topic.

Reply
01/23/2017 6:21am

Now a day, education has changed its way in comparison of old generation’s way of education. New frequently updated blogs and websites help you to adopt a different way to learn differently.

Reply

Somewhere the content of the blog surrounded by little arguments. Yes it is healthy for readers. They can include this kind of language in their writing skill as well as while group discussion in college.

Reply
01/23/2017 10:20pm

Everyone share their experience here and this is really nice to read different kind of theories related to same topic. Everyone placing their different opinion and it shows diversity. Appreciate this platform.

Reply
01/24/2017 3:50am

Unprecedented! This is genuinely a preparation related post and I am unreasonably peppy, making it difficult to be the peruser of this. This gave all around awesome information about article forming and share various more things. Well done keep it up

Reply
01/24/2017 9:14pm

Graceful written content on this blog is really useful for everyone same as I got to know. Difficult to locate relevant and useful informative blog as I found this one to get more knowledge but this is really a nice one.

Reply
01/24/2017 10:43pm

Perfect example of speculation, empathy and expression. Here I learned a new way to speculate through author’s writing. It allowed me to feel a new way to speculate your thoughts and express them in an easy and clear way.

Reply
01/26/2017 8:39pm

Graceful written content on this blog is really useful for everyone same as I got to know. Difficult to locate relevant and useful informative blog as I found this one to get more knowledge but this is really a nice one.

Reply

Enthusiastic words written in this blog helped me to enhance my skills as well as helped me to know how I can help myself on my own. I am really glad to come at this platform.

Reply
02/01/2017 1:08am

Reply
02/06/2017 9:56pm

Landmark Pallavaa is a pleasant Beach Resort in ECR road with the facility of deluxe rooms,beach view suites,special suites and budget rooms with world class amenities and facilities.

Reply
02/07/2017 4:16pm

superb blog post

Reply
02/10/2017 2:30am


Web hosting is the service that makes your website available to be viewed by others on the Internet.

Reply

Really appreciate all the stuff made by this blog to let people know more about this topic. I added little more relevant points to my knowledge which definitely going to help me in coming future.

Reply
02/19/2017 2:41pm

Thank finally I got what I need from your blog today. I've been searching for a long while. Thank you!

Reply
02/22/2017 5:44am

Thank you very much for the info agan convey and hopefully useful to my friend who read it.
and for a friend who needs

Reply
02/23/2017 1:53am

Hello! This is my first visit to your blog! We are a team of volunteers and starting a new initiative in a community in the same niche. Your blog provided us useful information to work on. You have done a outstanding job!

Reply
03/06/2017 7:59pm

ProMed Podiatry are leaders in the treatment of conditions affecting the lower limbs.

Reply
03/09/2017 6:39am

I gained new knowledge from well written content of this blog. It is showing some different kind of strategy to keep work better and improve with every new assignment. Gracefully written blog

Reply

Sometime few educational blogs become very helpful while getting relevant and new information related to your targeted area. As I found this blog and appreciate the information delivered to my database.

Reply
04/03/2017 4:19am

Reply
05/09/2017 11:23am

It's good to read this article right now. If not, I may miss a lot of something important from you.

Reply

Trendy doctor to provides natural medical tips, traditional medical tips, tradition secure life medical tips,siddha maruthuvam tips, Ayurveda medical tips, tradition health care, Traditional health care tips,unani maruthuvam tips, Traditional medical tips ,tradition medical solution, paarambariya maruthuvam tips, paddy maruthuvam tips, traditional health care solutions, natural health care, natural health care tips, health natural care, natural full medial solutions ,natural medical solutions, best natural medial tips

Reply

Great post, just what i was looking for and i am looking forward to reading your other posts soon!

Reply
06/01/2017 10:54am

I am glad to read this post, its an interesting one. I am always searching for quality posts and articles and this is what I found here, I hope you will be adding more in future. Thanks

Reply

We are the best providers of PHP Training in Chennai with excellent placements. Our training program is very much mixed both practical and interview point of questions. It will helpful for the companies and student

Reply
06/15/2017 6:25pm

Digital torque wrenches capture peak torque or display torque measurement in real time mode. High and low setpoints with LED indicator and audible alarm facilitate Go/No Go testing.

Reply
06/18/2017 4:29am

The force gauge kits include a selection of standard compression and tension attachments.

Reply
06/19/2017 4:19pm

That will tell us how to react properly. Great idea!

Reply



Leave a Reply