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Abstract

This article focuses on two of the employment taxes, FICA and FUTA. Part I surveys the payroll tax regime and the consequences of running afoul of it. Part II considers the recent history of dividend recharacterizations in the S corporation shareholder-employee context. Part III considers what would be "reasonable (minimum) compensation" for a shareholder-employee in an S corporation. Finally, Part IV takes up current, lively developments in the perennial debate between the Service and small business over independent contractor status.

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