Question

Mr. and Mrs. Soon are the sole shareholders of SW Inc. For the last three years, SW has employed their son as a sales representative and paid him a $30,000 annual salary. During a recent IRS audit, the revenue agent discovered that the son has never made a sale and spends most of his time playing saxophone in a jazz band. Determine the potential effect of this discovery on SW’s taxable income and on Mr. and Mrs. Soon’s taxable income under the following assumptions:
a. SW Inc. is an S corporation.
b. SW Inc. is a taxable corporation.


$1.99
Sales0
Views83
Comments0
  • CreatedNovember 03, 2015
  • Files Included
Post your question
5000