Taxpayer has had a Schedule C business for 5 years. In Aug 2019 changed to an S Corp and was not directed to take wages, therefore no SE taxes paid through 2019. There is a small profit on the S Corp P&L . Any suggestions for SE Tax for last 6 months of year?
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You still have a couple days in 2019 for SH to take a paycheck.
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How small of a profit? Did he tax distributions?
If the Sch C has profit, there is SE tax in 2019.
"Taxation is the price we pay for failing to build a civilized society." ~ Mark SkousenComment
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Thank you for your replies. Yes, I was thinking of a payroll tax deposit on Monday to cover the small profit for S Corp. Might remove any chance for audit issues. Again, thank you & Happy New Year!!Comment
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