On a dark and stormy night, as the clock strikes midnight, gather ’round as I share some terrifying tales of S-corporation nightmares that have haunted unsuspecting business owners…
In the quiet town of Businessville, Sarah thought she was being clever. “Why pay myself a salary when I can take distributions?” she whispered to herself, counting her tax savings. But the IRS phantom was watching. It emerged from the shadows, recasting her distributions as wages, summoning the dreaded payroll tax demon, and conjuring penalties that would haunt her for years. The horror of her “tax savings” transformed into a six-figure nightmare!
Mark’s tale is one that still sends shivers down accountants’ spines. His EIDL loan sat menacingly on his books, a dark shadow looming over his business. When tax season came, he reached for his losses, only to find them turned to dust! “But where are my deductions?” he cried. The cruel whisper came: “No basis, no deductions.” His tax bill rose from the grave, far larger than he ever imagined…
Tom’s retirement plan seemed innocent enough, until it transformed into a horrifying monster. His S-corporation’s plan didn’t match his business structure, creating a toxic brew of excess contributions and prohibited transactions. The Department of Labor’s dark spirits began to circle, and the IRS’s curse grew stronger with each passing day…
Maria heard the banshee’s cry too late. Quarter after quarter, her S-corporation’s profits grew, but her estimated tax payments remained unchanged. As April 15th approached, the banshee’s wail grew louder, warning of the massive tax bill and penalties that awaited. The underpayment penalty calculator spun like a possessed abacus…
Dear business owner, these tales need not be your fate. There’s still time to ward off these corporate evils, but you must act before the stroke of midnight on December 31st. Our firm holds the ancient scrolls of S-corporation wisdom, and we’re ready to perform the necessary rituals to protect your business from these terrifying tax traps.
Don’t wait until it’s too late. Contact us at info@adamhodsoncpa.com before these horrors materialize in your business. Remember, in the world of S-corporations, the scariest things are the ones you don’t see coming…
Debits, Credits & Well Wishes,
Adam Hodson, CPA