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Diane Publishing Books
Tax Gap: Actions Needed to Address Noncompliance with S Corporation Tax Rules
Mike Brostek (au)
S corp. are one of the fastest growing bus. types, accounting for nearly 4 million bus. in 2006. However, long-standing problems with S corp. compliance produce revenue losses in individual income taxes and employment taxes. This report: (1) describes the reasons bus. choose to become S corp.; (2) analyzes types of S corp. noncompliance, what IRS has done to address noncompliance, and options to improve compliance; and (3) further analyzes the extent of shareholder compensation noncompliance and identifies options for improving compliance. The report analyzed IRS research and examination data; interviewed IRS officials, examiners and other stakeholders; and reviewed relevant literature. Includes recommend. Illustrations.
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