“The S Corp as a business tax election is far from dead, however it is being threatened. The threats come from three sources: the government, creditors and benefit designers. One topic, however, is a persistent concern for the government in terms of lost revenue from S Corps – employment tax. The concern is that S Corp owners can lowball their own wages, and thereby avoid paying FICA and Medicare taxes on their incomes. Some politicians have gone so far as to call S Corp status a ‘tax shelter.’ Indications are that the Ways and Means Committee is looking at changing how small, flow-through companies are taxed. One plan is to subject S Corp owners to employment tax on all of their profits.”
http://www.forbes.com/sites/steveparrish/2013/10/15/death-of-the-s-corp-as-a-tax-election/
Tip Freedomwat.ch Staff with Bitcoin