S-corp and audit

[ChEAr$]

IRS doesn't have the manpower/womanpower to audit EVERY 1120S. So they will use
their computers to select the ones with either no salary and a profit or minimum salaries
with profits.

So our real question is at what level of salary versus profit will the computer flash the
red lights.

[Jiggers]

S-Corp audits

I don't know about all S-Corps, but they are auditing S-Corps with no officer wages and net profits and/or shareholder distributions.

[BHoffman]

Curious - where did you hear that?

[NewPerson864]

I have heard the IRS is conducting a comprehensive program to audit every single S-corp due to the SE tax on dividend and W-2 wages issue.

My clients often inquire me about this issue. Is it safe to tell them that it is inevitable that they will get at least one audit within the next 5 years?