Professional Services SpecialistsIRS Tax Resolution & Specialized Accounting for Professional Service Firms in Austin
Protecting attorneys, architects, consultants, and tech professionals from high-income audit triggers and S-Corp compliance issues.
Trusted by Austin-area attorneys, architects, consultants, and technology companies
The Professional Services Tax Nightmare
These are the industry-specific tax problems that catch professional services businesses off guard:
S-Corp Reasonable Salary Audits
The IRS targets professional service S-Corps for unreasonably low officer salaries. Paying yourself $50K while the S-Corp earns $500K is a red flag.
The Consequence: IRS reclassification of distributions as wages triggers back payroll taxes, trust fund penalties, and accuracy penalties—often $50,000-$100,000+ in unexpected liability.
R&D Credit Documentation Failures
Tech companies and engineering firms claim R&D credits, but the IRS requires contemporaneous documentation of qualified activities. Reconstructed records rarely satisfy auditors.
The Consequence: Disallowed R&D credits mean repaying credits plus interest. Repeated claims without documentation attract ongoing audit attention.
High-Income Audit Triggers
Professional service income above $400K attracts disproportionate IRS attention. Complex returns with multiple schedules, K-1s, and deductions are audit magnets.
The Consequence: High-income audits are comprehensive examinations of everything. One issue leads to others, and audits frequently expand to 3+ years and result in significant assessments.
How We Defend Professional Services Owners
Professional service firms have high income, complex structures, and sophisticated clients—but often neglect their own tax planning. We work with attorneys, architects, engineers, consultants, and tech companies throughout Austin, providing the same rigorous analysis you apply to your own work. Our goal: minimize tax while maintaining bulletproof compliance.
S-Corp Reasonable Salary Analysis
Industry-specific compensation studies supporting your officer salary. Documentation that satisfies IRS requirements while optimizing your overall tax position.
R&D Credit Documentation Systems
Contemporaneous time tracking and project documentation for R&D credit claims. Defensible methodology that maximizes credits while minimizing audit risk.
High-Income Tax Planning
Proactive strategies to minimize audit triggers while capturing all legitimate deductions. Retirement planning, entity structuring, and income timing strategies.
Professional Service Bookkeeping
Time-based billing integration, partner distribution tracking, and client trust accounting. Financial visibility that supports both operations and tax compliance.
Common Professional Services Audit Triggers
- S-Corp with low officer salary
- High income with significant Schedule C
- Large R&D credit claims
- Complex K-1 income from multiple sources
- Home office and travel deductions
Our Professional Services Services
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Helping Austin & Leander Professional Services Businesses
From Cedar Park contractors to Round Rock medical practices, we serve professional services businesses across Central Texas with specialized tax resolution and accounting services.