Now You Really Need to Know About S-Corp Tax Savings


If you are self-employed, an independent contractor, or operating a sole proprietorship you may be interested in learning more about a well-known tax saving strategy—forming a corporation or LLC and electing to be taxed under Subchapter S of the Internal Revenue Code (“IRC”). This is commonly referred to as forming an S-Corp. Although the tax savings of operating an S-Corp are very real (under the right circumstances), it does come with additional compliance costs (filing fees, other taxes, returns, etc.). As a tax attorney that has represented several hundred individuals and small businesses, I felt it would be helpful to provide an honest and detailed breakdown of the requirements and identify some of the common mistakes people make.

Disclaimer: This article was drafted for informational purposes only.  It is not a substitute for legal representation.  The concepts and laws discussed in this article are generalizations and may not apply the same way for each factual scenario.  Therefore, when assessing whether forming an S-Corp is the best option for you, it is important to seek legal advice outside of this article.

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A Deeper Look at How to Stop the IRS from Garnishing your Wages

The Internal Revenue Service (IRS) is widely regarded as the most powerful creditor in the United States.  Congress has given the IRS vast collection powers while limiting the due process rights of taxpayers (comparatively speaking).  As a result, the IRS uses wage garnishments in almost a semi-automated fashion.  In other words, taxpayers are commonly identified and targeted first by IRS computers and the process can occur fairly quickly.  Luckily there are several ways to stop the IRS from garnishing your wages (before and after the fact).  Here is a quick look at what will be covered in this article.

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Five Things You Should Know About IRS Audits and The Audit Process

Are you at risk for an IRS Audit?

There are generally four overarching audit triggers that lead to an IRS audit. Each major trigger will result in a different type of audit.  As a taxpayer, you should understand what the IRS is looking for, which will help you stay in compliance and significantly mitigate the chance of an IRS audit.

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