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.
DESIGNED FOR
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.
BENEFITS
After attending this presentation you will be able to...
- Identify the basic advantages of Distributions V. Salary/Wages
- Assess the consequences of an IRS re-characterization of distributions
- Review Reasonable Compensation in the courts
- Select the IRS guidelines for determining Reasonable Compensation
- Determine when Reasonable Compensation applies to your client
- Illustrate advanced scenarios
- Examine Tips from the pros and IRS Red Flags
- Study why Reasonable Compensation has become a priority for the SB/SE division of the IRS
- Identify options for determining Reasonable Compensation
HIGHLIGHTS
The major topics that will be covered in this course include:
- Explain the payroll tax advantage of taking distributions over wages
- Review key court cases that shape todays reasonable compensation landscape
- How to use co
COURSE LEVEL
Basic
PREREQUISITES
None
ADVANCE PREPARATION
None