Will Form 1120 C Penalties 2023-2024

Hi, I'm Christopher Anderson from Solon's tax in the county. Solon's has a combined experience of 37 years in working with business owners. We are dedicated to helping business owners understand what they need to know so they can properly claim and properly run their companies according to IRS guidelines while at the same time saving as much on their taxes as possible. If your company is a C corporation or an S corporation, the IRS requires the officers of the corporation to be paid a reasonable wage. There's a lot of debate on what officer wages are, when it is necessary to pay them, how to pay them, and when an appropriate amount to pay is, and so on. However, if your company is a limited liability company or a sole proprietorship, you are not required to pay officer wages because most of the time there are no officers in these entities. There's a lot of controversy about officer wages. One of the main reasons for this is that the IRS has stated that a wage should be a reasonable wage, so when setting an officer wage, there is not a clear-cut way to figure it out. Another reason for the controversy is that you are required to pay Social Security and Medicare taxes on wages that are paid to officers. This tax is 15.3%. As a result, most business owners want to minimize the compensation to officers so they can minimize the amount of taxes paid. If you are required to pay officer compensation, there are many things to consider so that you can pay as little tax as possible but at the same time fall within the guidelines given by the IRS. Some of the factors that have been considered by the courts in determining reasonable compensation are training and experience,...