For two decades, the IRS has been preparing an assault on reasonable compensation for S corps. Their arsenal is now fully locked and loaded with everything from commonsense tools to obscure memos. Join Paul Hamann, a leader in the field of compensation, as he reviews key court cases, IRS guidelines, preparer penalties, and some of the obscure weapons the IRS has put in place. Paul will debunk common myths on how reasonable compensation should be calculated and replace it with facts and methodologies that the IRS relies on.
Learning Objectives:
- Determine the basic advantages of distributions v. 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
- Determine when reasonable compensation applies to your client
- Explain advanced scenarios
- Review tips from the pros and IRS red flags
- Review why reasonable compensation has become a priority for the SB/SE division of the IRS
- Identify options for determining reasonable compensation
*CE/CPE Eligible: 2 CE credits are available to subscribers with these designations: CFP, CLU, ChFC and RICP. CPA subscribers will earn 2 CPE credits.
Field of Study: Specialized Knowledge
Prerequisites: There are no prerequisites for this session.
Advanced Preparation: None
Program Level: Basic
Delivery Method: Group Internet Based
NASBA Approved
Financial Experts Network (Sponsor Id#: 145173) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.