If you’re not good at paperwork, the corporate form of business is probably not for you.

William H. Bruecher III learned that lesson by paying more than $27,000 in taxes on monies his corporation supposedly loaned to him.

Mr. Bruecher’s corporation did not pay him a salary; rather, the corporation paid his personal expenses, classifying the payments as advances.

Advance Account on Corporate Books

Advances handled properly do not create a tax problem.

The IRS in an audit or the court in ... Log in to view full article.