IRS announces that Sub S corporations with no payroll will have more audits
The IRS has announced that they may audit up to 100% of Sub S companies where no payroll has been paid, especially to officers.
It will be important to look at all returns to be sure payroll is there. This does not mean all profit has to paid out in dividends. It used to be that only $8,000 in payroll would be enough. Now thout they are looking at how much would a competing company pay the CEO to do his job.
