IRS targets S Corp Distributions

[Lee B]

According to an article in Tax Pro Today, the IRS plans on targeting S Corp Distributions ,

 

"As part of the S corporation distribution campaign, the IRS noted that S corps and their shareholders are supposed to properly report the tax consequences of distributions. The service has targeted three issues as part of this campaign:

• When an S corporation fails to report gain upon the distribution of appreciated property to a shareholder.
• When an S corporation fails to determine that a distribution, whether in cash or property, is properly taxable as a dividend; and,
• When a shareholder fails to report non-dividend distributions in excess of their stock basis that are subject to taxation.

For this campaign, the IRS plans to conduct issue-based examinations, suggest changes to tax form, and conduct stakeholder outreach"

[Jack from Ohio]

1 hour ago, cbslee said:

According to an article in Tax Pro Today, the IRS plans on targeting S Corp Distributions ,

 

"As part of the S corporation distribution campaign, the IRS noted that S corps and their shareholders are supposed to properly report the tax consequences of distributions. The service has targeted three issues as part of this campaign:

• When an S corporation fails to report gain upon the distribution of appreciated property to a shareholder.
• When an S corporation fails to determine that a distribution, whether in cash or property, is properly taxable as a dividend; and,
• When a shareholder fails to report non-dividend distributions in excess of their stock basis that are subject to taxation.

For this campaign, the IRS plans to conduct issue-based examinations, suggest changes to tax form, and conduct stakeholder outreach"

This has been said by the IRS for decades.

Why don't they target the easiest cheats there are.  S-Corp owners that do not take a salary at all.  

What a bunch of of male bovine scat.

[Catherine]

11 hours ago, Jack from Ohio said:

What a bunch of of male bovine scat.

business as usual...

[Roberts]

Of all the outrage over taxes by the public - I've never understood why the S-Corp is allowed the way most operate under it.