Description

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.

This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Instructor: Paul Hamann

Target Audience

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 Objectives

After attending this presentation you will be able to...Identify the basic advantages of Distributions V. Salary/WagesAssess the consequences of an IRS re-characterization of distributionsReview Reasonable Compensation in the courtsSelect the IRS guidelines for determining Reasonable CompensationDetermine when Reasonable Compensation applies to your clientIllustrate advanced scenariosExamine Tips from the pros and IRS Red FlagsStudy why Reasonable Compensation has become a priority for the SB/SE division of the IRSIdentify options for determining Reasonable Compensation

Subjects

The major topics that will be covered in this course include:Explain the payroll tax advantage of taking distributions over wagesReview key court cases that shape todays reasonable compensation landscapeHow to use court factors to stress test reasonable compensationBest practices for determining reasonable compensationReview of the IRS’s enforcement on reasonable compensation; past, present and future