IRS Announcement regarding S Corporations

IRS Launches Study of S Corporation Reporting Compliance

If your medical practice corporation has elected S status, this is for you:

"IRS LAUNCHES STUDY OF S CORPORATION REPORTING COMPLIANCE

IRS officials have announced the launch of a study to assess the reporting compliance of S corporations. The study, carried out under the National Research Program (NRP), will examine 5,000 randomly selected S corporation returns from tax years 2003 and 2004. “The use of S corporations has exploded,” said IRS Commissioner Mark Everson. “The IRS needs a better understanding of what this means for tax compliance. This research is critical for achieving a strategic goal of ensuring that corporations and high income individuals are paying their fair share.” The study will include audits of officers receiving $10,000 in compensation, provided the corporation had $50,000 in profits."

Courtesy of the NSA.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.