Industry Insights
Articles, eBooks, White Papers, Infographics and more to keep you updated on the world of reasonable compensation.
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Your 6-Step Checklist for Simplified SMB Tax Planning
Now that tax season is officially over (any extensions you have to file aside), now is the perfect time to shift into tax planning mode for your SMB (small-to-medium business)…
Tax Planning May 25, 2023
Maximizing Tax Savings for Digital Content Creators: Understanding Reasonable Salary for LLCs and S Corps
If you’re a digital content creator, chances are you’ve seen something online about the potential tax savings of switching from an LLC to an S Corporation. However, most of these…
Best Practices May 3, 2023
What is Reasonable Compensation? A Primer for S-Corp Owners
Reasonable Compensation in a Nutshell All S-Corp shareholder-employees must pay themselves a reasonable salary (i.e. Reasonable Compensation) via W-2 BEFORE any distributions are taken. It’s the law. You should…
Best Practices May 3, 2023
The Risks of Letting your Clients Set Reasonable Compensation: Cautionary Tales
By Paul S. Hamann & Jack Salewski, CPA, CGMA Imagine this: You are a specialized heart surgeon who has spent the better part of 40 years training and perfecting your…
April 6, 2023
Simple Win– Grow Your Bookkeeping Practice The Simple Way
By Gabrielle Fontaine, PB, ASBC I have a question for you: Would you rather get new clients to grow your business or get paid more from your existing clients? Most…
March 1, 2023
10 Simple Wins to Build Your Dream Tax and Accounting Practice
Tax season is ramping up once again. Are you feeling less than enthusiastic about how your work and personal life will roll out over the next few months? Long hours,…
Tax Compliance February 1, 2023
Help! My New Client Didn’t Take Reasonable Compensation Last Year
This is a question we get a lot at the beginning of the year: “I just took on a new S Corp client and they didn’t take any Reasonable Compensation…
January 1, 2023
Simple Guide To Reconcile S Corp Reasonable Compensation
With the last month of the year here, it’s time to reconcile Reasonable Compensation for your S Corp clients. If you are not familiar with the process of reconciling your…
December 1, 2022
Reasonable Compensation Horror Stories: The Tax Man Cometh
When my office phone rings at 5:30 on a Friday afternoon, you know it’s probably bad. This particular call was no exception. On the other end of the line was…
November 1, 2022
If It’s Not Documented, It’s Not Done
Having a Reasonable Compensation figure that is “reasonable” isn't enough anymore. With the IRS turning up the heat on Reasonable Compensation compliance [See IRS TECH TARGETS S CORP OFFICER COMPENSATION],…
October 1, 2022
Unpacking the Increased IRS Enforcement in IRA22 for S Corps
The Inflation Reduction Act of 2022 (IRA22) was signed into law on August 16, 2022. The goal of the package is to raise $737 billion in revenue over the next…
August 18, 2022
IRS Tech Targets S Corp Officer Compensation
By Paul S. Hamann & Jack Salewski, CPA, CGMA The IRS is deploying technology and big data to combat compensation under-reporting. What does this likely mean for you and your…
August 1, 2022
Is the IRS Job Aid on Reasonable Compensation Still Relevant?
By Michael Gregory, ASA, CVA, NSA, MBA, Qualified Mediator with the Minnesota Supreme Court Our guest contributor this month is Michael Gregory. Former IRS Territory Manager and key architect of…
July 1, 2022
Adding Compensation Consulting to Your Practice
By Stephen D. Kirkland, CPA, CMC, CFF You know that your clients may be extremely astute when it comes to manufacturing widgets. But managing business operations is a different challenge.…
June 1, 2022
What You Need to Win an IRS Reasonable Compensation Challenge
By Paul S. Hamann & Jack Salewski, CPA, CGMA This is a true story. Names & identifying details have been changed to protect the innocent. Nancy had a feeling that…
May 1, 2022
IRS lays out steps to keep Reasonable Comp challenges out of Tax Court
In a 2017 memorandum to its examiners and appeals agents, the IRS lays out steps to keep Reasonable Compensation challenges out of Tax Court. Great, you say, nobody wants to…
April 1, 2022