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S Election For Cash Basis C Corporation Fraught With Peril

S Election For Cash Basis C Corporation Fraught With Peril

Document the obligation of the company to pay out bonuses based on accrual income, make entries to reflect the obligation and pay them within two and a half months.  Make the payments even if you may have to loan money back for working capital and, of course, be rigorous about executing notes if that is required.

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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.