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Loan to business means money taken out of W2...

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FILdiditagain

Junior Member
What is the name of your state?What is the name of your state? NY

In a nutshell:

Husband (DH) is partner with his father (FIL) in S-Corp. Corp papers NOT changed but do get an 1120S (50% shareholder). DH also gets a W2 as he RUNS the company.

W2 was off by $30k. When accountant was asked why he said DH made a loan to the business. DH had NO knowledge of this. Acct. stated (to me) that old bookeeper didn't pay payroll taxes but didn't take any money either SO, rather than pay fines and such, they (FIL & Acct) put it on the books that DH made a loan to the company. TOTALLY sounds like bull to me!!

Acct was told DH had absolutely no knowledge of this - and he did not! My guess is company was making money (which in the beginning of last year they DID have a profit) and FIL took money out of the business. Now, he is saying it was the bookkeeper because FIL does not want to pay the taxes on that money. FIL have been turned in for tax evasion before and was fined. Trust me, thsi guy is a REAL winner!!

Anyway, what recourse do my DH and i have, if any???

Thanks!
 



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