EPISODE · Aug 5, 2026 · 13 MIN
415 \\ The S-Corp Salary Trap: What the IRS Is Actually Watching?
from SMALL BUSINESS FINANCE – Your Guide to Business Tax Planning & CPA Tax Advice · host Tiffany Phillips, CPA & Small Business Tax Strategist
Is your S corp salary putting your business at risk? Many owners pay themselves a small wage and take the rest as distributions. That may cut payroll taxes, but it can also raise an IRS red flag. Tiffany explains how the IRS decides whether your salary is reasonable. You’ll learn why the popular 60/40 rule is a myth, what happens when distributions are treated as wages, and how market data can protect you. She also shares three ways to calculate your salary and the records you should keep. These practical tax strategies and tax planning steps can help you lower risk without giving up legal tax savings. Before you run your next payroll, learn how to choose—and prove—the right salary. Listen now before a surprise IRS letter forces you to learn the hard way. Next Steps: 💰 Start Paying Less in Taxes – Grab a Copy of Your Biggest Expense! ➡️https://tiffanyphillips.samcart.com/products/your-biggest-expense-bundle ☎️ Find Out How Much You’re Overpaying the IRS – Book a Free Discovery Call ➡️https://calendar.phillipsbusinessgroup.com/tax 📧 Questions? Email Me at [email protected] ✅ Like and Rate us for more practical tax saving tips... Keep More! 👉 Want me to break down how to pay yourself the right way? Comment "SALARY"
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415 \\ The S-Corp Salary Trap: What the IRS Is Actually Watching?
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