At the most recent National Association of Tax Professionals annual conference, I noticed that although I was in seminars with seasoned professionals — many of whom know a lot more than I do in certain areas of tax law — there was an overall lack of understanding of the topic of Reasonable Compensation for S-Corp shareholders. Misinformation abounded, with “tips and tricks” rather than legal precedent guiding the way.

Some years ago, I took a series of classes presented by Paul Hamann, President of RCReports Inc., and learned all about the court cases that have defined the issue of Reasonable Compensation over the years. I chose to subscribe to their annual service (no, I do not get any special favors or payment for promoting their product — I’m just a fan)… but even if I hadn’t, the education I received on the topic helped inform my client advisory practice and it made me a better tax preparer and CPA.

Turns out that he’s got another class coming up with CPA Academy in a couple of days, and I wanted to encourage you to take it, and to spread the word (this advice holds whether you’re an S-Corp owner or a CPA/ EA/ Accountant/ Tax Preparer/ Bookkeeper).

Thursday, August 29, 2019
12:00 PM ET – 11:00 AM CT – 10:00 AM MT – 9:00 AM PT
FREE – 2.0 hours CPE / 2 CE

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, Tax and Financial advisors to cover with their clients. There are tools today that take the guesswork out of determining Reasonable Compensation, and help build rapport and trust with your clients.

– Review why Reasonable Compensation has become a priority for the SB/SE division of the IRS
– Demonstrate the basic advantages of Distributions vs. Salary/Wages
– Identify options for determining Reasonable Compensation