Ep 4: When S-Corps Go Bust: A Warning for Financial Advisors

Episode 4: When S-Corps Go Bust: A Warning for Financial Advisors

Guest: Scott Schweiger, CPA

In this episode of Financial Advisors Want to Know, host Catherine Tindall is joined by Scott Schweiger, CPA, to discuss a crucial 2016 Tax Court case that financial advisors and tax professionals often overlook. The case highlights the risks of misusing an S-Corporation to reduce self-employment taxes—leading to costly penalties, interest, and back taxes. Learn how to structure your entity correctly to avoid IRS scrutiny.

Key Takeaways:

✅ Ensure your FINRA earning regulations align with your entity structure—IRS audits are increasing, especially for high earners.
✅ Verify that your income flows match your business contracts and 1099 reporting.
✅ An RIA structure may allow brokerage income to be attributed directly to the firm rather than the individual.
✅ Effective tax planning must reflect actual cash flows, not just serve as paperwork for the IRS.

🔗 Connect with Scott: LinkedIn
📩 Sign up for tax updates & future episodes: Subscribe Here
🌐 Learn more: www.dominiones.com
🔗 Connect with Catherine: LinkedIn | Twitter

‍