Salt Lake City UT Audit – Profile for S Corporations
A week ago I went to a Tax Seminar here in Salt Lake City UT and one of the things I learned regarding S Corporations from one of the instructors was the following:
- S Corporations have a much lower audit profile than sole proprietorships. In a recent study, only .4% of all S Corporations were audited by the IRS compared to a much much higher percentage of sole proprietorships.
- This study was based on the fact that the owner was paid a reasonable and adequate wage out of the S Corporation.