Let's say someone owes the IRS about 10K right now ...
They are looking over past returns filed and realized from 1998-2001 when they were making the biggest amount of money they were making in their lives they had a jackass of a CPA at PriceWaterhouseCoopers who files everything through Schedule C's from his corporation instead of schedule K-1.
From what I can see my biggest gain in refiling would be I would get back a great deal of SE taxes, especially since I payed myself a salary - most likely all of them I paid. Am I incorrect on this or is this correct? My salary was most likely over the amount required.. I believe it was $50K ... so i might have 20K left for Medicare.. etc under SE taxes. It has been a while since I have dealt with any of this.
Besides this, and the fact it will be a bitch to refil the way he filed the originals... Do I have any other potential positives or negatives by refiling and trying to get back that SE tax I paid to cover my current tax debt?
Anyone who can go over or point me to an article about the differences of claiming your Business income through Schedule C and K1 - I would really appreciate it.. or if you have any experience with it, post here.. I'm sure about anyone here who is American has some experience with this...
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06-02-2005
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