Date: May 12th at 2:00pm – 4:00pm ET
CE: 2
Speaker: Paul Hammen
IRS Program#: X9QQU-T-00776-21-O/S
Reasonable Compensation for S Corps
Between 2010 and 2013 a flurry of court cases and IRS enforcement brought the issue of ‘What is Reasonable Compensation for a Shareholder-employee of an S Corp’ 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. In 2017 congress passed the TCJA again placing Reasonable Compensation front and center, making the stakes even higher.
Learning Objectives:
• Demonstrate the basic advantages of Distributions V. Salary/Wages
• Assess the consequences of an IRS re-characterization of distributions
• Review Reasonable Compensation in the courts
• Discuss the IRS guidelines for determining Reasonable Compensation
• Determine when Reasonable Compensation applies to your client
• Explain advanced scenarios
• Review Tips from the pros and IRS Red Flags
• Review why Reasonable Compensation has become a priority for the SB/SE division of the IRS
• Identify options for determining Reasonable Compensation