David A. Turner, CPA

02/25/2025

One of the most overlooked aspects of an S Corporation election is the requirement for owners to be on payroll, , and pay themselves a reasonable salary. The IRS expects this salary to be in line with industry standards, business profits, and the owner’s role in the company. Many business owners mistakenly believe they can take all profits as distributions and avoid payroll taxes, but this can lead to IRS scrutiny.

01/22/2024

So often, people tell me they have a 1099 worker / independent contractor because "they agreed" the person would be responsible for his own taxes. I'm obligated to tell them that the IRS is not party to that agreement and can impose significant assessments and penalties if they reclassify a worker from independent contractor (1099) to employee (W2).

This article explains the group of considerations that are taken as a whole (not a single factor) by the IRS in making that determination.

Employers should ensure workers satisfy all applicable tests before classifying them as independent contractors.

12/12/2023

In September, the IRS pressed pause on the ERC program until at least the end of this year due to a wave of fraudulent claims.

12/08/2023

401(k) limit increases to $23,000 for 2024, IRA limit rises to $7,000

IR-2023-203, Nov. 1, 2023 — The Internal Revenue Service announced today that the amount individuals can contribute to their 401(k) plans in 2024 has increased to $23,000, up from $22,500 for 2023.

08/25/2022

The IRS Is Automatically Providing Late Filing Penalty Relief for Both 2019 and 2020 Tax Returns. Taxpayers Do Not Need to Do Anything to Receive this Administrative Relief.

Taxpayers need not do anything to receive this administrative relief. The IRS is automatically removing (abating) failure-to-file penalties for 2019 and 2020 returns.