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Surviving an IRS Reasonable Compensation Challenge
Course Outline
RCReports Overview
Report Sample
News Letter


Cost Free
Presentation Length 2.0 hours 

Recorded DateDecember 18, 2018  CPE:Not available  (archived webinars do not offer CPE credits) Subject AreaTaxes  Course LevelBasic  Who should attend?CPA - small firm
CPA - medium firm
CPA - large firm
Enrolled Agent 
Series: Enrolled Agents, Taxes    
Course Description

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.

Learning Objectives

  • Demonstrate the basic advantages of Distributions vs. 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.

  • Review why Reasonable Compensation has become a priority for the SB/SE division of the IRS

  • Identify options for determining Reasonable Compensation

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Paul is the Founder and President of RCReports, Inc., a company that provides Reasonable Compensation software tools and consulting services to the accounting industry. Paul has been the visionary behind the creation of, the first online application for establishing Reasonable Compensation for Shareholder-Employees of S Corps. For the past 18 years, Paul has been consulting on the issue of compensation as an executive recruiter and consultant to small businesses. Paul has started and led several successful businesses since graduating from the University of Colorado, Boulder - School of Business with a Bachelor’s degree in Small Business & Entrepreneurship.


Jack is the Vice President of Education for RCReports. He is an expert on the topic of Reasonable Compensation as it applies to S Corp, and Small Closely Held Businesses. Knowing a Reasonable Compensation figure is only half the equation. Putting the Reasonable Compensation figure into context of the Business is where the Trusted Advisor adds his knowledge and wisdom to benefit the client and their business. Jack is also the owner of Jack Salewski, CPA, a firm that is focused on tax planning, strategic operational planning and tax preparation for small and medium sized businesses. The planning side starts with a feasibility analysis and ends with an exit strategy. The exit could be a sale, succession or estate planning. Jack graduated from Regis University (College) in 1979. He immediately joined the staff of Duffy, Gordon and Hughes, CPAs. In 1982, he became part of Duffy, Griffin and Co, CPAs. In April of 1984 Jack bought out Norm Griffin and the firm became Jack Salewski, CPA. During the last 35 plus years Jack has been part of countless businesses going through part or all of the business life cycle.

About Our Presenter

RCReports is a tool for Tax and Financial advisors to determine Reasonable Compensation for a client. RCReports provides a defensible position to an IRS challenge (for S-Corps), and is an excellent planning and valuation tool. RCReports synthesizes a proprietary blend of IRS criteria, Court Rulings, geographic data and our EXCLUSIVE database of wages to accurately assess Reasonable Compensation for S Corp, Small & Closely Held Business Owners.