Lauren Twitchell

Setting a reasonable salary for S-Corporation owners is one of the most critical tax issues these businesses face. Reasonable compensation is a recurring focus area in S-Corporation examinations because it directly affects employment tax reporting. Getting this wrong can lead to costly audits and penalties. This post breaks down what the IRS looks for, how to document your salary decisions, and why guessing a number can cause serious problems. IRS review of S-Corp salary documentation Why...

Tax season often brings anxiety for many taxpayers, especially when thinking about the possibility of an IRS audit. But what actually happens before the IRS sends an audit letter? How does the IRS decide which tax returns to examine? Understanding the selection process and what triggers an audit can help taxpayers prepare and avoid surprises. This article explains how the IRS selects returns for review, the difference between notices and field exams, the role of data matching, and why keeping...

Keeping the right business records for the right amount of time can save you from costly audits, fines, and lost opportunities. Many business owners struggle with knowing which documents to keep and for how long, especially under IRS rules. This guide breaks down the essentials of record retention, helping you stay compliant and organized without drowning in paperwork. Organized filing cabinet with labeled folders Why Record Retention Matters Proper record retention is more than just good...