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"Teaching businesses how to ensure tax compliance and limit tax exposure”

Calverton, MD, October 2022– In its latest course offering Wealth Zone University breaks down the nuts and bolts of S corporations. This course tackles the common misconceptions of the S Corp, which if leveraged correctly can be a valuable Tax planning tool and financial management tax election. Specially although the S Corp Status is popular amongst business owners, is too often not fully understood, properly set up, or fully utilized. Further, these specially designed business models are often subject to significant tax exposure due to either a lack of proper information or misinformation. WZU sets out to dispel the myths regarding S Corps and equip CEO and business owners with the necessary steps for success. 

First, the course explains the intricacies of owning and operating a business with an S Corporation Tax status. Specifically, S Corporations: don’t have Double Taxation Distributions like C Corporations, aren’t subject to Social Security and Medicare taxes, can accumulate cash free of the Accumulated Earnings Tax, provides tax-free distributions to Stockholders; and allows stockholders to deduct losses. 

Next, the course equips students with the essential information needed to overcome common S Corp pitfalls. Specifically, the course imparts the expert advice developed by WZU’s founder and CEO, Don Moragne that will help students successfully limit their exposure to the - and not trigger federal audits. 

Historically, many Corporation owners and employees fail to draw a salary or any “reasonable” compensation. The failure to take an appropriate salary or draw wages when owning or operating an S Corporation frequently triggers subscription from the government and many businesses find themselves subject to an IRS audit. Following participation in this course, CEOs will know how to avoid this trap. WZU’s curriculum stresses the importance of S Corporation Owner-Employees consistently drawing a salary and thereby avoiding the stress and expense of an IRS audit. 

The primer then explains how S Corp business owners can ensure that their salary is reasonable per IRS guidelines. When evaluating whether the proposed compensation is reasonable, the following factors should be considered:

• Training and experience 

• Duties and responsibilities 

• Time and effort devoted to the business

• What comparable businesses pay for similar services

• Compensation agreements

Another key component of the course will focus on further maximizing the benefits of S Corp status, by simply conducting sound human resource practices within the organization. Specifically, participants will learn how critical it is to properly account for and report all health insurance premiums paid by the company on the Owner’s W-2. Failure to do so could cost owners serious money- leaving a valuable income tax deduction on the table. 

Finally, the course imparts essential C-Suit Wisdom that equips CEOs with the tools needed to be proactive in their tax compliance and effectively limit tax exposure in 2 simple steps.

1. Implement Employment Agreements between the Owner-Employee and the S Corporation to document that the Owner-Employee is the S Corporation and that all revenue generated by the CEO belongs to the S Corporation. 

2. Establish Accountable Plans inside the S Corporation to allow reimbursement of the Owner-Employee’s business expenses.

About Wealth Zone University: Don Moragne, the Founder and CFO of Wealth Zone University is a functional CFO with expertise and extensive experience in the management of financial and wealth strategies. Wealth Zone University is a component of The Success Zone, Inc., a Financial Management Firm that provides Chief Financial Officer services to small and medium-sized businesses. WZU operates under the belief that success in business is possible for anyone who begins an entrepreneurial journey, so long as they are armed with the proper mindset, the appropriate business model, and experienced advisors.

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