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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…
Tax Planning December 1, 2022

The Field Guide to Leverage Reasonable Compensation to Ignite Year-Round Advisory Revenue

eBook The Field Guide to Leverage Reasonable Compensation to Ignite Year-Round Advisory Revenue Download our field guide today and learn how a reasonable compensation analysis can add value to your…
Client Advisory Services November 17, 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…
Court Cases & True Stories 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],…
Court Cases & True Stories 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…
IRS News, Updates & Guidance August 18, 2022

IRS Tech Targets S Corp Officer Compensation

The IRS is deploying technology and big data to combat compensation under-reporting. What does this likely mean for you and your S Corps? That Reasonable Compensation challenges will likely occur…
IRS News, Updates & Guidance August 1, 2022

Is the IRS Job Aid on Reasonable Compensation Still Relevant?

Our guest contributor this month is Michael Gregory. Former IRS Territory Manager and key architect of the IRS Job Aid on Reasonable Compensation shares his wisdom on how the Job…
IRS News, Updates & Guidance July 1, 2022

Adding Compensation Consulting to Your Practice

You know that your clients may be extremely astute when it comes to manufacturing widgets. But managing business operations is a different challenge. The boards and officers of closely held…
Client Advisory Services June 1, 2022

What You Need to Win an IRS Reasonable Compensation Challenge

This is a true story. Names & identifying details have been changed to protect the innocent. Nancy had a feeling that $40,500 was a good Reasonable Compensation figure for her…
Court Cases & True Stories 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…
IRS News, Updates & Guidance April 1, 2022

How to Stress Test a Reasonable Compensation Figure

Stress testing a reasonable compensation figure is simple. The courts have listed the factors they consider when determining whether a reasonable compensation figure is indeed reasonable. We can use those…
Court Cases & True Stories March 1, 2022

What if an S Corp Owner can’t afford to pay Reasonable Compensation?

This is by far the number one question we receive, and the answer is both simple and complex. Why? Because the amount of Reasonable Compensation actually paid is tied to…
Court Cases & True Stories February 1, 2022

W-2 or 1099 for Shareholder-Employees of S Corps?

1099 or W-2? That’s the number one question Jack receives here at RCReports. Answer: W-2 We hear your argument: Paying wages via 1099-MISC instead of W-2 has no tax effect!…
Tax Planning January 1, 2022

How one Reasonable Compensation Report saved a Taxpayer $80,000+

Is credible data really that important? Yes. In one recent case, data convinced an IRS Examiner to abandon an unreasonable position, saving the taxpayer thousands of dollars. In the process,…
Court Cases & True Stories December 1, 2021

77% of Accountants Misinformed on Reasonable Compensation

The most popular methods for computing reasonable compensation are, like the cool kids in high school, cute and fun to hang around with, but not who you need at your…
Tax Compliance November 1, 2021

“More Action Can Be Taken”: IRS Aims Big Data at Officer Compensation

Just how big of an issue is S Corp. officer compensation under-reporting? Big would be an understatement. The most recent estimate (TY 2011-2013) has S Corp. owners underreporting compensation by…
IRS News, Updates & Guidance October 1, 2021

Learn why RCReports is the #1 reasonable compensation tool for accountants.

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