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View Full Version : S corp refusal to pay child support


cairsti
Aug 1, 2012, 10:48 PM
Myex husband co owns his business with his parents. His mother does all the bookkeeping as well as his taxes. He is nearly 30000 behind in payments. I understand they do not have to garnish his wages because he is not exactly on payroll being a part owner, but is there a way to go after the businesses profits?

ScottGem
Aug 2, 2012, 03:29 AM
You need to discuss this with your attorney or the agency that collects support. There may be ways to attach assets.

AK lawyer
Aug 2, 2012, 04:52 AM
S corporations are required to file tax returns showing how much was distributed to each shareholder. And, in general, they are not allowed to accumulate earnings; they must pay the shareholders who are working for the corporation reasonable compensation. See this (http://www.irs.gov/newsroom/article/0,,id=200293,00.html).

Garnish his earnings from the corporation and require the corporation to reveal his form K-1.