qbteachmt
Level 15
03-05-2020
11:36 AM
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"owners draw was approx 31K, should I apply at least a 15K distribution"
The IRS has the right to determine this was Attempting to avoid payroll taxes, and they can recharacterize this as payroll. And now the client is late with taxes, and will suffer penalties and interest.
Did they want to Fix 2019 payroll? Because it seems it should be $31,000 + $6,000 = $37,000? Unless you can show the person puts in very few business hours.
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"Level Up" is a gaming function, not a real life function.
"Level Up" is a gaming function, not a real life function.