When A Relative’s Wages Become Ineligible For The ERC
It may be simple to understand who is a relative of a greater-than-50% owner, but it is often complex to determine who are greater-than-50% owners themselves. Advisers should gather information on all related entities and related individuals to make a full analysis of ownership attribution. Ultimately, a relative of any owner can be at risk ERC wage disqualification.
When Owner Wages Become Ineligible For The ERC
Family attribution of ownership produces unfavorable results by generally disqualifying more wages for the purposes of the ERC. Advisers and taxpayers should take a close look at these rules before claiming the recently expanded benefits of ERC.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.