KELLER CPAs

Certified Public Accountants & Business Advisors
(208) 887-9541 2361 S. Titanium Pl, Ste# 100
Meridian, ID 83642
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Annual Payroll for Shareholder

The IRS has recently taken a position that a shareholder should be paid throughout the tax year rather than taking a paycheck at the end of the year to meet the reasonable compensation requirement. There are no tax implications except that the IRS could charge payroll tax penalties on deemed “late” payroll tax deposits if they determine that the shareholder should have been paid throughout the year.

Roth IRA Conversions

For 2010, a conversion from a regular IRA to a Roth IRA is no longer subject to limitation based on the net income of the taxpayer. Previously, taxpayers with adjusted grow income of greater that $100k were not able to convert their IRA’s to Roth IRA’s. The amount of tax can either be paid in 2010 or an election can be made to defer the tax and spread it over two years – 2011 and 2012.

Certified Public Accountants & Business Advisors – Keller CPA - Serving Boise, Meridian, Eagle, Kuna, Nampa, Idaho and beyond
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