How to Avoid IRS “Reasonable Compensation” Audits for S Corp Owners in Los Angeles, California
Los Angeles S corporation owners can reduce IRS “reasonable compensation” audit risk by paying a defensible W-2 wage supported by industry data, duties, and time records—because the IRS routinely reclassifies low or zero salaries as wages. In California, S corp salary decisions also affect payroll tax, EDD compliance, and federal employment tax exposure. This article […]