I subscribed because after attending your 2-hr webinar, it seemd a very good price for a product that fills a real need in my practice of business valuation. I have been using RMA’s officer comp percentages, some scattered internet research, and my 40 yrs experience as a CPA in public practice, to come up with RC for my valuation adjustments. Now I’ll have some hard data to rely on, and much more peace of mind!
“RCReports has a clean process to obtain reasonable compensation for my valuations. I do a lot of work in divorce and Normalizing earnings is pivotal in determining what is the goodwill of the company. Typically, this is a marital asset.”
“We subscribed as an alternative to ERI. We are a valuation firm normalizing owner / officer and related party compensation in the valuation process. The pricing is reasonable, the website information is helpful and the peer feedback was good. We have confidence in BVR and if you were able to have them promote your product, we believe you are doing something right. I have done some reports in the software already and like what I see.”
“I subscribed because we are getting more and more S-Corp clients and wanted to add this tool to our quiver, so to speak! In the past we have shied away from S-Corps and as a result we have a whole slew of LLC’s filing as partnerships. But as some of these operations are growing exponentially it is imperative that we shift them to S-Corps in order to control taxability and get them more in the mode of operating like larger businesses and better understanding their responsibilities taxwise.”
“We’re a law firm handling hundreds of S-Corp tax returns along with IRS Issues (including audits). Reasonable Compensation is an important issue with many of these. RCReports assists us in providing our clients guidance and a basis for salary levels. “
“I have known about your product for quite some time but have been unable to convince clients to look at this. I now have a client undergoing an IRS audit challenging his low S corp salary. The IRS wants to reclassify all distributions as wages, even above the reasonable salary amount. I need some credible basis for the reasonable salary amount I can take to the examiner.”
“One of the best aspects of RCReports is you and your team. Everyone on your team is helpful. You, Molly, and everyone.
Routinely, we perform 1 – 2 compensation reports a year. Therefore, RCReports is not a huge factor in our success. Nonetheless, having the software saves us a lot of time and headache when we perform compensation reports. We value that.”
“We have utilized RCReports for various matters including, S-Corporation reasonable compensation matters, normalizing adjustments for business valuations and shareholder disputes.”
“The reason I was interested in RCReports is because I have so many S Corp clients, and while we can do our best, I would like to make sure we have some foundation for determining if it is low or even high. I also am starting to do more advisory work, and this dovetails in with that well.”
“We have used RCReports for several years. We make it part of our small business accounting and tax package and have all of our S Corp owners complete the surveys to make sure our salary amounts for the owners are reasonable. It is so much more helpful to have a system in place to establish this number than just estimating an amount.”
“Great software. As a CPA, S Corp officer compensation has become a big issue as you know.
Your software takes the “guesswork” out of my work and helps substantiate our basis for officer compensation in case
of an audit.
In addition, it was very helpful to me to validate my compensation as an S Corp for 2018 😊”
“We just love the Reasonable Compensation Reports. 😊 We like having something “concrete” to show the IRS if needed to substantiate the wages someone is taking. The program is easy to use and easy for the clients to view!”
“I like having rcreports in our arsenal of tools for our clients, especially when it leads to a face to face meeting, that is valuable. And I like that it removes any perceived subjectivity on the part of me and my client.”
“Our firm is trying to stay ahead of the IRS cracking down on reasonable comp. We looked into gathering all the sites with labor stats etc. but realized there wasn’t an easy way to pull in all that info effectively. We found your site and realized it was a time efficient way to provide a client service with a comfort level we were satisfied with.”
“I am so relieved to finally have a useful and efficient way to set my officer compensation rates, especially something that will hold up to IRS scrutiny”
I have many LLCs and S-Coprs that I work with and the RC reports help give my clients confidence they have a bulletproof analysis against the IRS and the Labor Department when paying themselves. It also allows me the talking points to get the owners to take an appropriate amount of compensation and a good planning tool as they get older and begin looking at Social Security.
“I use RCReports to establish reasonable salaries for S-Corp shareholder employees including my own CPA practice. I love how it analyzes the numerous roles small business owners play and consider the reasonable comp for all those different functions. The typical small business owner does a lot of administration and that really helps keep compensation on the lower end in a justifiable manner. I also like the professional looking reports. I previously used Salary.com or some other site and a spreadsheet but it wasn’t very detailed or professional looking. I haven’t had an IRS audit yet but it should be a real advantage having all of the details in a professional report.”
“I just had a client complete an interview and went over it with them and we are going to decrease his pay and save him some SE tax. They were really impressed with it. I’m excited to continue to use it.”
“I have not known how to advise clients in this area, however, and so it was something I wanted to tighten up in my practice. Knowing that I have this service available to me and to my clients has given me a greater peace of mind that should an IRS audit arise, we would be on solid ground to substantiate reasonable compensation.”
“With reform this topic is so critical. We are going to be hard nosed with our S corps this year. I used some of your material for a presentation today – impact of business owner paying themselves $100k vs RC recommended $78k – keeps over $4000 in owner pocket given QBI pass through on top of payroll tax.”
“I subscribed to RCReports because I need to use the Reasonable Compensation Reports for my clients who are business owners and might be targets of scrutiny by the IRS for not taking reasonable compensation for the services they perform in their business. The platform you built is awesome and easy to use and it came highly recommended by Dominique Molina, CPA of AICTC as well as Ed Lyons of Tax Coach.”
“I subscribed to RC Reports because I am a tax adviser who works with S-Corporations. I have attended a few of your webinars through CPA Academy previously and was impressed with your staff, experience, and product. As you know, it is important that I establish a reasonable compensation amount that can be defended under audit for my clients. I am looking forward to utilizing RC Reports to do just that for my clients.”
“I run a tax firm that also has a business appraisal department (I have a total of 15 employees). As a company, we have always been aware of the need for reasonable compensation data and have used various sources including ERI and Salary.com. The reason I chose RC Reports was the comprehensive way the compensation studies are constructed. The other compensation study companies give a pay range for the position, but RC allocates based upon actual duties of the officer and the quality of operations and management.
From an audit or litigation support perspective, this is a more defensible position. Over the years I’ve performed this approach manually by running numerous studies for various job descriptions for the officer and then allocating. This is time consuming and not as concise as your platform. I believe the new tax laws are going to increase the need for formalized salary studies to keep CPAs and our customers out of trouble. Because your approach mirrors mine with less effort it was a pretty easy decision.”
“I couldn’t do my tax planning without the software – period!”
“This issue has always been a concern to me and I see the importance of it increasing significantly over the next few years with my medical and dental client base. Specifically as it relates to the Section 199A deduction. I need a better way to document the process for my clients.”
“As a Tax Architect, RCReports is a key tool in my tool-kit. I run reasonable compensation on every business client with a pass through entity.”
“We add 10 LLC S Corp annually and are slowly going back and making minor adjustments on our existing LLC S Corp owner employee pays. The studies help us set owner payroll. We have used them several times in IRS audits and they work.
My paycheck from our CPA firm was based on a study.
The data seems accurate by county and profession and the reports seem professional.
I understand the process and can do a study in a few minutes.”
“We subscribed because we realize this is a valuable tool that can help us add value to our our clients and our firm. It is a necessary tool and process we will provide to comply with the law and protect our ASSets.”
“I had training today with Molly on using RC Reports. She is terrific!! She answered my questions, showed me how to use your vital tool in the work I am tasked to do here at Financial Gravity with our clients. She also told me of additional resource you have for clients I will be working with that my fall outside of what is considered normal.
Thank you for the response to my request for help and for having a terrific trainer in Molly…she ROCKS!!”
“I subscribed because of the 2017 tax law – I believe as CPA’s we will be more compelled than ever to have justification for the compensation we suggest to the client for owners/officers. So far, I do love the product!”
“RCReports has helped us in doing TCJA planning for our clients. We have been doing Compensation studies to support wages in order to maximize the 199A deduction. Interestingly enough, a by product of having staff assist with the studies is that they have done studies on themselves to assist in their salary negotiations. I wonder if I can charge them for their studies.”
“When I was first introduced to RCReports.com, I had an S-Corp client going through an IRS audit. One of the main issues being challenged was the shareholder-employee compensation. My client had only recorded $24,000 in W-2 wages for the years 2009, 2010 and 2011 yet had taken out substantially more from the S-Corp in the form of shareholder dividends. The IRS was suggesting that the shareholder wages for those years should be around $100,000 based on their research using certain internet salary research tools.
I used RCReports.com to prepare a Reasonable Compensation Report that we shared with the IRS agent. The report did not support a salary of $24,000 but it did suggest an amount substantially lower than the $100,000 that the IRS was proposing. After studying the report the IRS agreed to reduce my client’s annual salary to $60,000 for the years in question and indicated that they were very appreciative to see that we had done some research and were able to provide a report that they (the IRS) could rely upon.
I now highly recommend that my clients prepare a Reasonable Compensation Report through RCReports.com in advance of setting up their salary in their S-Corp so that if ever (or when) challenged by the IRS they already have in hand a basis for the amount. I predict the IRS will be less likely to suggest an inflated compensation amount and you will be spared the time and headache needed to refute an arbitrary calculation.”
“I like the salary calculation because some of my clients don’t understand why they need to pay themselves “x” dollars. They want to keep it in the bank account or hire more people and pay them instead. It’s a very user-friendly software and I don’t have any issues finding prior reports, users, etc.”
“I only have a few business clients but they generate revenue of $10M – $20M annually and I find that all I can do to protect them tax wise is extremely valuable. 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 one tool I use to do that.”
“Being able to generate a reasonable comp report is what it is all about from our standpoint and it will be especially important over the next couple months as we are combining this process with our tax planning engagements around the new Tax Cuts.”
“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.”
“My firm works almost exclusively with service-based businesses and their owners. Our clients rely on us for anything related to tax planning. We try very hard to perform our tax planning consistently with each client. Most client issues are common from client to client, so once we agree as a firm on the best way to handle a particular tax issue, we all handle that issue consistently going forward.
One of our biggest pain points until recently was determining reasonable compensation for S-corporation owners. Many times potential clients would challenge us on our methodology for solving that particular issue and compare our answer with what other CPAs had told them. It was difficult to give a consistent answer since our approach tended to be ad-hoc.
Attending the reasonable compensation seminar by RC Reports was an eye-opening experience. We learned about recent tax court activity and the new ways the IRS is looking at this important issue. We immediately started using the RC Reports tool with our S-corporation shareholders.
The response with our clients has been very positive. Not only does this tool take pressure off of us to prognosticate everyone’s individual circumstances, it also helps clients realize the value and expertise we are providing them as we help them adjust and interpret the report, and then update their tax planning accordingly. We’ve made the RC Reports tool a permanent part of our tax planning process. We now have a consistent and defensible way of advising our clients on this important tax issue.”
“I subscribed because I need my clients to have a reliable comp report for S-Corp and I saw your presentation about a year ago and was not ready to sign up as I did not have my practice yet. You also come highly recommended from accounting/tax groups and I am part of.”