Looking a little closer, Schedule E was used every year but one which is the one that jumped out at me. The one year it was not used and SE Tax was paid it was to the Tune of $20,000.00 ... back in 1999 - The rest of the years no SE Tax was paid and the corporation was filing thru Schedule E only with a salary being paid ... which I forgot it truly doesn't matter what the amount is (according to my CPA at the time) as long as the IRS sees it as a fitting salary for your duties.
Are there any other tax benefits besides this year that would be achieved by refiling the other years differently? I hear so many people mention schedule K-1 when they talk about S-Corps being a way around paying taxes but schedule SE clearly states any income from K1 derived from self employment or any income from schedule C which would also be self employment income..
I find it hard to believe he slipped to the tune of me over paying $20,000 in taxes so I think there may be something missing here... Even though it was a small percentage of what I paid that year it is a nice chunk of change to say the least. I looked and the S-Corp was in effect the whole year, I can't see any other reason he would of filed that way this year and the rest of the years filed properly to avoid the SE tax... any ideas anyone?
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