Tag Archives: taxes

Six years?

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I always feel nervous when I have to amend a client’s taxes.  After all, that means that the ability of the IRS to audit their report continues.  Normally, there is a 6 year deadline for audits.  Except that time frame starts from the due date of the return or the time the taxes are filed- whichever is later.  (Yes, that means just because you filed in January of this year for 2021 does not mean that the audit period lapses on 31 January 2028; nope- it’s still [for this year, which the altered due date] 18 April 2028.

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Cheaters!

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We work diligently with our clients that have S entities to ensure that they receive reasonable compensation.  You do recall that pass-through companies like S entities must pay their principals ‘reasonable compensation’ (a salary commensurate with their experience, capabilities, and time worked).  In so doing, the rest of the profits of the firm can ‘pass-through’ to the principals, without being subject to employment (social security and Medicare) taxes,  a savings of some 15+% to augment the pass-through revenue.

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Hell Bent?

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Here’s a scoop.  Personal tax filing is now barred until 27  January  Lincoln’s Birthday (12 February; hot off the press RIGHT now).  (Business entities can file now.) Each and every year it gets later!  But, that’s not the whole story- many states won’t finalize their forms until the 5th of February, so there may be further delays barring your tax filing.

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