Billionaires with $1 salaries - and other legal tax dodges the ultrawealthy use to keep their riches

[surfered]

1. The IRS used to audit shareholders of S- Corporations (a pass thru entity).

If the owner was receiving distributions, it was assumed some amount, based upon time working at the entity, was wages subject to income and payroll taxes.

We advised clients to calculate the time spent in service to the company, assume an hourly rate, and file a payroll tax return and W-2, as there are penalties for failure to file those reports. After that , the IRS could only argue about the amount, a more subjective determination.

As always, pigs get fat, hogs get butchered.