Level 15

Business & farm

a common mistake made by many owners of S-Corps and C-Corps who do work for them(perform services which brings in the money)   but pay themselves no salary.  Then one day thy are paid a visit by the IRS or ask to come into the IRS offices.   There they are told paying no salaries when they performed  services is a big no-no.  Then the IRS imputes salaries. Hits the taxpayer with trust fund penalties for failure to withhold and pay the fica and social security taxes on such imputed salaries plus other penalties and interest.  then hits them again on there personal income tax return.  if they can't pay, the IRS could and has placed liens on the taxpayers property.

 

all this is to say you need to consult a tax pro who specializes in international taxation  so your "tax savings plan" doesn't end up costing you a fortune.