Webinar: Reasonable Compensation

Overview

Reasonable compensation is a key area of S-corporation taxation and is one area of S-corps that the IRS often audits. Many of the maxims that tax professionals use when talking about S-corporation reasonable compensation, such as “pay yourself 60% of the profit as a salary and 40% as a distribution” are not based in any facts and would not survive IRS scrutiny. Compensation must be “reasonable” and is not based on a reference to a percentage of profit — in fact, audits and court cases have sometimes set salary much lower than 60%. This training looks at what reasonable compensation means, how to determine it, and how to defend it. Throughout, we examine court cases on the subject of reasonable compensation, to help reinforce what the IRS and the courts look at in determining reasonable compensation.

Sponsored by ReasonableSalary.com

Designed For

This webinar is complimentary for ASCPA members. Login instructions will be sent 24 hours prior to the event.

Objectives

After participating in this webinar, attendees will be able to:

• Explain the requirements of reasonable compensation to clients with an S-Corporation. 
• Determine reasonable compensation for S-Corporation clients.
• Defend compensation of S-Corporation clients should it be questioned by the IRS.
• Ensure proper due diligence as a tax preparer.
• Apply court rulings and IRS requirements to client specific situations.
• Ensure proper documentation of due diligence as a tax preparer.
• Successfully analyze case studies regarding reasonable compensation.