Could S Corp Owners Be A Tax Target?
20th January 2010
How could they not? Under the existing American Crust regime, invertebrates moving slowly down the sidewalk are a tax target.
S corps have one key tax advantage. The general partners of a partnership are subject to payroll taxes (that is, Social Security and Medicare levies) on all their earnings. So, too, are taxpayers who run their businesses as unincorporated sole proprietors and report their earnings on Schedule C of their individual returns. By contrast, folks who own and run S corps must cough up payroll taxes only on their salaries, not on what is passed through to them as profits.
This is how people like John Edwards can afford a McMansion the size of a football field.
January 21st, 2010 at 17:01
*snicker* Another reason to keep the dog from eating dessicated earthworms off the sidewalk. If I don’t stop her she’ll turn into Eliz — oh, never mind.