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REASONABLE COMPENSATION FOR SHAREHOLDER-EMPLOYEES OF S-CORPS

Cost Free

CPE Credits 2.0 hours

Subject Area 2.0 - Taxes (Federal Tax)

CE Credits 2.0 hours

Course Id# - HURS9-T-00009-15-O

Course Level Basic

Instructional Method Group Internet Based

Prerequisites None

Advanced Preparation None

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

Paul S. Hamann

RCReports, Inc.
President
phamann@rcreports.com
(720) 833-7399

Paul Hamann is an expert on determining Reasonable Compensation for closely-held business owners. He has educated more than 100,000 tax advisors and valuators on the topic of Reasonable Compensation and has been published in numerous national and state journals.

Paul founded RCReports in 2010. RCReports cloud software determines reasonable compensation for Closely-Held Business Owners and is used by CPA’s, EA’s, Tax Advisors, Valuators, Forensic Accountants and Attorneys when they need to determine a Reasonable Compensation figure for a client.

When Paul isn’t in the office, he enjoys spending time with his wife and chocolate lab, hiking Colorado’s back country or paddling its scenic lakes and rivers.

Jack Salewski, CPA, CGMA

RCReports, Inc.

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 a reasonable compensation figure into the business context 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 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.

Additional Materials

Surviving an IRS Reasonable Compensation Challenge

Course Outline

RCReports Overview

Report Sample

RCReports Newsletter

Frequently Asked Questions

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Handout Materials

Presentation Slides

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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.