audit risk

Spouse Employee 105 HRA: Do You Need a W-2, or Can the Reimbursements Stand Alone?

A spouse employee 105 HRA can be supportable without W-2 wages in some cases, but zero wages plus large benefits can look unusual. Adding wages improves optics but triggers payroll compliance and penalty exposure.

Commissions Assigned as S Corporation Management Fees: The Audit Trail Is Obvious

If the contract, license, and 1099 all point to you personally, a management fee or ACH routing does not turn the income into S corporation revenue. The IRS typically follows one question: who earned the income.