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#1 Reasonable Compensation Analysis Solution. Start Now
RCReports determines Reasonable Compensation
for Closely-held business owners
for Closely-held business owners
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.
Whether for Tax Compliance, Normalization or Planning, RCReports has a report to fit your need.
Whether for Tax Compliance, Normalization or Planning, RCReports has a report to fit your need.
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- Are you a Tax Professional or Valuator? Get Started today and protect your clients.
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The Cost Of Doing Nothing
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Undervaluing Owner WagesThe Eighth Circuit affirmed the district court’s decision in Watson, holding that an S corporation shareholder-employee (Watson) who paid himself $24,000 in salary during 2002 and 2003 while withdrawing over $375,000 in distributions was not reasonably compensated for his services.$23,431in payroll taxes, penalties, and interest$175,470dividends reclassified by order of court
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Too Little, Too LateDahl, an accountant and sole shareholder, paid himself a small salary. The IRS hired a valuation expert to determine what other accountants were paid for similar services. What really sent this case over the edge is that Dahl paid himself less than his staff including clerks.$2,861refund claimed by Dahl was declined$22,385in payroll taxes, penalties, and interest
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Real Estate Agent Loses Reasonable Compensation CaseMcAlary set his compensation at $24,000 per year, though that was never paid. In 2006, the S corporation reported net income of $231,454, but paid no compensation to McAlary. Instead, McAlary took a distribution of $240,000. IRS hired a valuation expert to determine that a real estate agent should have been paid $100,755 salary out of his S Corp’s net income of $231,454.$83,200was reclassified as compensation.$23K+in payroll tax, interest, and penalties
Reasonable Compensation Solutions
All reports deliver an independent and unbiased Reasonable Compensation figure that can be relied on in IRS examinations and litigation.
RCReports Shines in IRS Audit!
RCReports was used effectively in an IRS audit appeal
CPA, armed with knowledge from our...
CPA, armed with knowledge from our...
$5,000 Preparer Penalty
A CPA sought us out to run Reasonable Compensation
Reports after he was hit with a $5,000 preparer penalty...
Reports after he was hit with a $5,000 preparer penalty...
Modern Accounting & RCReports
One of the hard and fast rules of working with
SMB’s is that you will regularly advise them ...
SMB’s is that you will regularly advise them ...
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100% Satisfaction Guarantee
We want you to be completely satisfied with RCReports!
We want you to be completely satisfied with RCReports!
Why Reasonable Compensation
Build a closer relationship with your client, enhancing your
ability to become the person your clients turn to first...
ability to become the person your clients turn to first...
Are You at Risk?
Most S Corp owners do not understand Reasonable Compensation,
as their tax advisor, the burden of educating them falls on you...
as their tax advisor, the burden of educating them falls on you...
Why there is no right answer
The wrong answer goes something like this: I guessed; I split my
distribution 50/50, or any other answer that involves a WAG...
distribution 50/50, or any other answer that involves a WAG...
"In court you need to be very careful about what you use as evidence, and I do use RCReports because the information comes from an unbiased source" - Stephen Kirkland, CPA, CMC, CFC, CFF, January 2018
"This reasonable compensation calculation has already assisted each of them. They place a lot of trust in me and expect me to come up with ways to keep them clean. This is the tool I use to do that." - Ron E. RCReports Subscriber since July 2017
"I thought I would let you know that I used your Reasonable Compensation Reports for two years under audit and was successful in reducing that client’s liability by $20,000. Your reports had a big part in helping to convince the auditor to lower her first assessment against my client." - Carl Hanton, EA
Bradenton, Florida, RCReports Subscriber since July 2015
What The Experts Say