This is a relatively important ruling in the courts, so important it might be headed to the Supreme Court if the taxpayer further challenges the ruling.

If you’re an S-Corp owner, pay attention. The IRS is concerned about wages being reasonable because of the payroll tax component. If an S-Corp owner is running an artificially low wage, they are avoiding payroll taxes and are instead taking the majority of their profits through distributions.

Taxpayers are incorrectly receiving balance-due notices from the IRS even though they don’t actually have anything due.