Page 20 THE REVERE ADVOCATE – FRiDAy, NOVEmbER 18, 2022 OBITUARIES Diane m. (Caggiano) Dumas Of Revere Ma, formerly of Wakefi eld Ma, and East Boston passed away Thursday, November 10, she was 77 years old. She was the beloved wife of George S. Dumas, with whom she shared 57 years of marriage. Loving mother of Roy S. Dumas, and his Wife Robin K. Dumas. Dear sister of the late Emily Marini & her surviving husband Richard R. Marini Sr. of Londonderry NH, & the late Jamie Marescalchi & her surviving husband Albert Marescalchi of Reading MA. Also lovingly survived by her nieces, nephJorge m. melo Of Revere, formerly of Cambridge, passed away unexpectedly on November 6, Born to Maria (Sousa) Lourena and the late Manuel DaCosta Melo in Portugal on October 2, 1960. Jorge came to the U.S. in 1978. He was the beloved father of Jorge M. Melo and his partner Gina McConnell of Revere, and his step-children Tabatha Mackay of Boston, Serena Mason of Dedham, and Edmund Cardoso of Haverhill. Dear brother of Maria Batista of Fall River and Gabriela Melo of Portugal. conditionally. Family and friends are invited ews, and cousins and friends. She worked at E.B. Horn Jewelers for 50 years where they became her second family, and she made many friends along the way. Family and friends were always most important to her, and she loved them all unto honor Diane’s life by gathering in Vazza’s “Beechwood” Funeral Home, 262 Beach St., Revere on Thursday, November 17th from 4pm to 8pm, then again on Friday November 18th at 10:00am before leaving in procession to St. Anthony’s of Padau Church in Revere, for a Funeral Mass to be celebrated in her honor at l1:00am. Interment immediately followed in Woodlawn Cemetery Everett MA. In lieu of Flowers, remembrances may be made to the Alzheimer’s Association, 480 Pleasant St., Watertown, MA 02472. ay and Alani DiFranco. Also survived by his nephews David and Michael Batista, cousins and friends. Jorge worked many years at Sterlingwear of Boston where he was the VP of Facilities. He loved working with his hands whether it was tinkering on a project or working in his garden. He was a go-getter who was very rarely idle. Visiting hours were on ThursCherished grandfather of Avery Cardoso, Maddock Mason, Logan Mason, Casey Mackay, Cori Mackay, Cameron MackJulianna Valentina Landaverde Calderon Of Revere. Baby Julianna Valentina Landaverde Calderon passed away on November 12, 2022. Born in Boston on July 6, 2022 to her loving parents Saul Landaverde and Diana Calderon. Cherished sister of Mateo and Sebastian. Beloved granddaughter of Marisol Lopez, Rafael Calderon, Saul Landaverde, Yenely Umana, and William Herday, November 10 from the Paul Buonfi glio & Sons-Bruno Funeral Home, Revere. The Funeral in the funeral home and a Funeral Mass, in St. Anthony’s Church, were held on Friday. nandez. Adored niece of Veronica Calderon, Fernando “Andy” Calderon, Bryan Lopez, Jenn Lopez, Allison Hernandez, Angel Calderon and Fabiola Calderon. Also survived by her adorable cat stitch. A Visitation will be held at the Paul Buonfi glio & Sons-Bruno Funeral Home 128 Revere St, Revere on Friday, November 18, 2022 from 10:00am to 11:00am followed by a Prayer Service at 11:00am. Interment Woodlawn Cemetery. SNOW For Advertising with Results, call The Advocate Newspapers at 781-286-8500 or Info@advocatenews.net PLOWING Residential and Commercial Please Call: 339-987-7354 cell phone Reasonable compensation for S Corp shareholders T he IRS is beginning to select a certain amount of S Cor por a tions for examination to make certain they are complying with paying stockholders who work for the corporation a reasonable salary which in turn translates into paying a reasonable amount of payroll taxes assessed on the salary. The IRS will be looking at three types of distributions to S Corporation shareholders. 1. Those of appreciated assets where the S Corporation fails to report the gain on sale of that asset in the first place; 2. When an S Corporation fails to report a distribution to a shareholder as a taxable dividend when required to do so, and 3. When a shareholder fails to report a non-dividend distribution as a taxable capital gain when the distribution exceeds his or her stock and loan basis in the S Corporation. With the IRS now receiving an estimated $46billion in additional funding towards its enforcement efforts, S Corporations need to maintain very accurate books and records, keep track of stockholder basis and loan basis, and be sure to report taxable transactions properly. Calendar year 2022 returns filed on or before March 15, 2023 will still be susceptible to an income tax audit on or before March 15, 2026. This will give the IRS virtually three years to train their newleyhired auditors just in time to still be able to audit 2022 calendar year tax returns. Certainly, 2023 calendar year returns and thereafter will be even more likely to be audited. S Corporation profits above and beyond owners’ salary that are distributed to the stockholders are not subject to payroll taxes. This is not the case with partnerships. All of a partnership’s ordinary net income from a trade or business is subject to selfemployment taxes. The IRS has created a fact sheet that serves as a guide for its agents to determine whether or not an S Cor por a tion ’ s shareholder ’s salary is reasonable. The IRS wants to collect payroll taxes on all wages in order to fund the social security system. I f a S Corpor a tio n shareholder actively works in the business and does not take any salary at all, more likely than not, the IRS will eventually catch up with that S Corporation and will look to reclassify most, if not all, of the stockholder distributions as salary and then assess the S Corporation for the requisite amount of payroll taxes. Interest and penalties would also be assessed. The IRS FS (fact sheet) 200825 sets forth a guideline for agents to use in order to determine a reasonable salary such as duties and responsibilities, time and effort devoted to the business, salaries paid to nonstockholder employees of the business, what comparable businesses are paying for the same level of service, etc. With the Democra ts maintaining the Senate, it does appear as thought the IRS will indeed be funded with an additional $86 billion, with $46 billion earmarked towards enforcement. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a master’s degree in taxation. Like us on Facebook advocate newspaper Facebook.com/Advocate.news.ma
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