Kyle Flischel

S corporation owner reviewing salary and distribution paperwork with a CPA in Tampa

Why Do S Corporation Owners Have to Pay Themselves a Salary?

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If you own an S Corporation, you have probably heard that you need to pay yourself a “reasonable salary”. What might not be explained is why.

The answer comes down to how you receive money from the business. Salary is payment for the work you perform, while distributions are payments you receive as an owner. The rule exists to distinguish what an owner earns from working in the business from what they receive because they own it.

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IRS Audit

6 Things That Can Raise IRS Audit Risk (and How to Avoid Them)

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Few words make people more nervous during tax season than the word audit. It’s easy to imagine the IRS combing through every detail of your finances, looking for something wrong. In reality, audits aren’t as common as most people think. Most tax returns are processed automatically, and only a small percentage is selected for review.

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Big beautiful bill

From TCJA to the Big Beautiful Bill: What’s Changing for Taxpayers

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When congress passed the Tax Cuts and Jobs Act (TCJA) in December 2017, it redefined how Americans paid taxes. It lowered tax rates, expanded deductions and rewrote decades of policy. But many of those provisions were set to expire at the end of 2025.

Now, a new law has entered the scene: the One Big Beautiful Bill Act (OBBBA). Positioned as both a continuation and a correction, it redefines what the post-TCJA tax world looks like.

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Filing Your Taxes Early

File Now, Breathe Later: Why Early Tax Filing is a Smart Move

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Tax season can feel overwhelming, but taking the proactive step of filing your taxes early can provide significant advantages (and help you avoid going through the 5 stages of grief over your tax filing). From quicker refunds to reduced stress, early filing helps you stay ahead of deadlines while avoiding many common tax-related headaches. Here’s a closer look at the benefits and effective strategies for filing your taxes early.

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The Benefits of Paying Quarterly Taxes: Avoiding Penalties and Managing Cash Flow

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Unlike traditional employees whose taxes are automatically deducted from their paychecks, business owners and freelancers often need to manage their own tax payments. Making quarterly tax payments are one effective way to handle this, with the added benefits of avoiding potential penalties and managing cash flow. A primary benefit of paying quarterly estimated taxes is

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Understanding the Tax Implications of Personal Loans

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Whether you’re consolidating debt, funding a major purchase or handling an emergency, personal loans can be a great tool for managing expenses. However, they do come with their own set of tax implications that borrowers should understand to avoid surprises come tax season. Personal loans are not considered taxable income. Borrowers are not subject to

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Embrace a Fresh Start: Welcome to the New Tax Season!

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As the calendar resets and a new year is upon us, it’s time to gear up for the upcoming tax season. This period brings proactive planning, organization and informed decision making to navigate tax obligations efficiently. The IRS will begin accepting electronically filed returns mid-January and the deadline to file will follow on April 15th.

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Understanding W-2 Employment

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W-2 employment represents the traditional employment model in today’s diverse labor market, defining the conventional employer-employee relationship. W-2 employees are individuals who are formally employed by a company or organization, and whose income tax is withheld by their employer. The employer has specific legal and financial obligations towards the employee. Employers file form W-2 with

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What to do when you receive a letter from the IRS

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If you receive a letter from the IRS, it’s more than likely regarding your federal tax return.

Your notice will explain the reason for receiving it as well as necessary actions to take. You could have a balance due, or the IRS determined you are due a larger or smaller refund than anticipated. They may also need additional information, have questions or are making a change to your return. The IRS may also need to verify your identity.

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Married Filing Jointly vs Separately

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Married taxpayers, who were married on the last day of the tax year, have two filing status options when it’s time to file their annual tax return. The best choice varies depending on each couple’s individual needs.

Married filing jointly offers lower tax rates, but filing separately may be more beneficial depending on the couple’s individual situations.

So, which filing status is best for you? 

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Secure Act 2.0 and 401K Enrollment

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There’s been an update to the original SECURE Act passed in 2019. The original SECURE Act governed how to contribute and withdraw from your IRAs and employer-sponsored retirement accounts.

The SECURE Act 2.0 passed at the end of 2022 and created many changes, especially those that affect employer-sponsored 401K accounts.

Of utmost importance are the requirements for new plans that…

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An Inside Look at the IRS (Spoiler Alert: It’s not as Glamorous as you may Think)

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Have you ever wondered what your tax return goes through after you file your taxes? Maybe you picture this efficient system where everything is automated, streamlined, and ready for processing immediately. Unfortunately, that’s not it. Instead, what you should picture is piles of papers stacked wall-to-wall, in stacks taller than most adults piled in every

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Primary Residence Gain Exclusion

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Your home is your pride and joy, and you earn capital gains when it appreciates. This is why many people buy a home versus renting. When you sell your home, the IRS wants its share of the profits earned. But, if the home is your primary residence, meaning you lived there full-time, you may be able to exclude some of your earnings from your taxable income using the primary residence gain exclusion.

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How is Cryptocurrency Taxed in the United States?

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Cryptocurrencies have been increasing in popularity, and we are seeing more and more questions about how they are taxed. In this blog post, we will take a brief look at the current state of cryptocurrency taxation in the United States. We will answer some common questions about how taxes work for digital currency transactions and provide some tips on how to stay compliant with the tax law.

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How to Deduct Your Home Office as a Tax Expense

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If you use a part of your home exclusively as your home office, you might be able to write off the expenses on your tax returns up to $10,000 if you don’t show a loss. You don’t have to live in a specific type of home and the deduction applies to both homeowners and renters.

The Tax Cuts and Jobs Act made it a lot easier for self-employed taxpayers to deduct their home office expenses. It doesn’t cause the red flag most people assumed, and it typically doesn’t cause more issues when you sell the home.

Here’s what you must know about deducting your home office expenses.

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