I have an s corporation client - the type that always wants to be aggressive - and he often insinuates that I don't do enough to save him on his taxes.
I very politely recommended that he goes to a certified tax planner, or the like if he is not satisfied with my style of tax preparation and planning.
His business nets about a million dollars, and his wife makes about 0.5 million as well.
His latest idea and email request now is to pay himself either a very tiny salary OR an extremely large salary in order to manipulate/optimize his net investment income taxes and his additional Medicare taxes.
My answer would usually be:
"Your pay as an employee of your s corporation should reflect the value and quantity of your services to the business - not an optimized amount to create an improved net investment tax or additional Medicare tax situation."
Anytime now we will be facing the last straw between us, which is fine, but I want to bounce this off of the members here to make sure that my answer is not off base.
What would you do?