Course Description

Reasonable compensation is one of the most misunderstood topics in the tax realm, but it can have very real, very large implications on your clients and your firm. If you work with S Corps, you have a duty of care to ensure your clients are taking appropriate reasonable compensation and have this figure documented using unbiased data every year. Failing to do so can result in back taxes, penalties, and interest for your clients, and preparer penalties for you. In this fast-paced session, we'll also dive into the details of recent reasonable compensation audits, showing you the critical role documentation plays and how real practitioners have faced these challenges. 

Learn from the mistakes of those who’ve gone before you and avoid the horror that occurs when you butcher reasonable comp.

Learning Objectives

• Discover what reasonable compensation is (and what it is not)
• Recognize how documentation from a reliable, unbiased source is essential in defending against recent reasonable compensation audit challenges
• Discover how to discuss with your clients the rules surrounding reasonable compensation and the risks with skirting those rules
• Recognize the social security and disability implications of setting reasonable compensation too low
• Identify steps to ensure both you and your clients are covered when it comes to reasonable compensation

Prerequisites

• None

Who Should Attend

CPA & EA practitioners who advise S Corps on the issue of Reasonable Compensation who are interested in learning about current IRS guidelines, and solutions for advising their clients on the issue of Reasonable Compensation.