Sub-S Dividend Distribution
Tax is not my bag. But did I see something recently to the effect that the IRS was ramping up to look very hard at distributions from S-corps. Have you seen anything about that?
The issue, of course, is owners taking distributions in lieu of, or to supplement, ordinary compensation.
I consult to very high growth-profile business starts, small and medium businesses. Essentially I become the “CFO” for firms that are just not quite ready to hire a full time CFO. We work *with* CPA’s, EA’s, and Counsel. We don’t do tax and very little financial accounting, but you can imagine that there is some tension between our firm and the CPA’s.