Between 2010 and 2020 a parade of Court Cases, IRS Factsheets, Job Aids and Internal Memos, plus Heightened IRS scrutiny and Preparer Penalties has brought the issue of ‘Reasonable Compensation for S Corp’s” out of the shadows and placed it forefront as a priority issue for CPA’s, EA’s, Tax and Financial advisors to cover with their clients. We will explore key court cases, IRS guidelines, preparer penalties and some of the obscure tools the IRS has put in place. We debunk common myths and fiction on how reasonable compensation should be calculated and replace it with facts and methodologies that the IRS relies on.

LEARNING OBJECTIVES:

By completing this session, you will be able to:

Recognize the basic advantages of Distributions V. Salary/Wages
Assess the consequences of an IRS re-characterization of distributions
Identify key Reasonable Compensation court cases
Discuss the IRS guidelines for determining Reasonable Compensation
Determine when Reasonable Compensation applies to your client
Explain advanced scenarios
Identify IRS Red Flags
Select the appropriate approach for determining Reasonable Compensation

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.

Course Level: Basic
Course Length: 120 Minutes
Prerequisites: NONE
Delivery Method: Group-Live Internet
Field of Study: Taxes
Recommended CPE: 2
Recommended CE: 2

IRS Course Category: Federal Tax Law Topics/Federal Tax Related Matters
Online: NESGF-T-00162-22-O
In-Person: NESGF-T-00162-22-I