Preacher man comes to you, saying he got lawyer to form him a corporation and ask you to do what's necessary so he can be one of those chapter S kind of things. so he won't have to pay so much in social security taxes.
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ChEAr$,
Harlan Lunsford, EA n LA -
Well that is a good one. He will then come back in 8 years wanting to know why that statement from the social security admin shows him not having paid in any ss tax or will only be able to draw so much. Had this happen with a new customer years ago. Work with father and neither had paid for about 8 to 10 years.
Had a long long time client quit me because a lawyer told them he could save them a bunch in taxes. Friends went to him and said he got them money back. Lawyer told customer he would set up a S-Corp. They asked my opinion. I explained the officer salary, etc. A few months later I was told that they were going to the lawyer to do the taxes but still wanted me to do payroll and bookkeeping. I told them thank you for your business over the years but no... have him do it. Haven't heard from them since.
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