Tax authorities seem to have taken the first steps toward closing a reporting loophole for S corporations.

According to a government report, the Internal Revenue Service is selecting a tiny number of S corporations for examination to make sure they are complying with the payment of employment taxes. When the IRS does examine an S corp, many revenue agents don’t look closely enough at executive compensation, according to the agency that produced the report, the Treasury Inspector General for Tax Administration, which provides independent oversight of IRS activities. READ MORE