Event Description

Reasonable compensation is one of the most misunderstood topics in the tax realm, and it can have very real and impactful implications on your clients and your firm. If you work with S Corps, you have a duty of care to ensure that your clients are taking appropriate reasonable compensation and have this figure documented using unbiased data every year. Failing to do so can potentially result in back taxes, penalties and interest for your clients, and preparer penalties for you.

Learn from the mistakes of past practitioners by attending this fast-paced session that will reveal the horrors that can occur when reasonable comp is butchered.

Enrolled Agent Approved

Designed For

• CPA – small firm
• CPA – medium firm
• CPA – large firm
• Enrolled Agent

Objectives

• Define what reasonable compensation is (and what it is not)
• Recognize why documentation from a reliable, unbiased source is key in a reasonable comp challenge
• Identify how to discuss the rules surrounding reasonable compensation with clients and the risks around skirting those rules
• Describe the social security and disability implications of setting reasonable compensation too low
• List steps to ensure both you and your clients are covered when it comes to reasonable compensation