- November 12, 2020
- Posted by: Paul Hamann
- Category: Classes
The following webcast was recorded on November 10, 2020. Registration is required for viewing.
Between 2010 and 2013 a flurry of court cases and IRS enforcement brought the issue of ‘What is Reasonable Compensation for a Shareholder-employee of an S Corp out of the shadows and placed it forefront as a priority issue for CPA’s, Tax and Financial advisors to cover with their clients. In 2017 congress passed the TCJA again placing Reasonable Compensation front and center, making the stakes even higher.
CPE Credits: Not available (archived webinars do not offer CPE)
CE Credits: Not available (archived webinars do not offer CE)
Subject Area: Taxes
Course Level: Basic
Instructional Method: Recording
Advanced Preparation: None
Who Should Attend: CPA & EA practitioners who advise Shareholder-Employees of S Corps on the issue of Reasonable Compensation who are interested in learning about current IRS guidelines, and solutions for advising their clients on the issue of Reasonable Compensation.
- Demonstrate 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
Paul Hamann is an expert on determining Reasonable Compensation for closely-held business owners. He has educated more than 30,000 tax advisors and valuators on the topic of Reasonable Compensation and has been published in numerous state CPA society journals.
Paul, along with other experts in their own fields founded RCReports in 2010. RCReports cloud software determines reasonable compensation for Closely-Held Business Owners and is 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.
When Paul isn’t in the office he enjoys spending time with his wife and two chocolate labs, hiking Colorado’s back country or paddling its scenic lakes and rivers.
Giulia Dozzi (CrawfordEllenbogen, LLC)
“This is one of the best CPE courses I have ever attended. I practice in multiple areas – estate and gift, trust, pass-through entity, and individual, and while there are many complex situations to discuss with clients, this is one that it seems the industry decided to ignore. For a time, the audit rate seemed to support the blinders approach, however personally, I don’t agree with this approach. This course not only educated on the issues for the client, but also for the preparer, and provided suggestions as to how to approach the clients who want to close the conversation before it opens. I could not recommend this course enough.”
David Baker (David L. Baker, CPA)
“I’ve worked as a CPA for 40 years, this was the clearest presentation of the reasonable comp issue I have ever heard. Well done.”
Candace Stevens (Number Cruncher LLC)
“Before the webinar, I new Reasonable Compensation was important. After the webinar, I now know that it isn’t just important but VERY important. I now know I need to reach out to all of my corporate owners and educate them on the importance of doing a Reasonable Compensation study completed. I also now that if they will not comply, I will need to fire them. No client is worth a $5,000 penalty. Thank you for sharing this information”
Kelly Confair (Howard Howard & Hodges)
“This webinar is so far beyond informative. I have learned so much in the changes with the changes in the tax laws and how to present to my clients why Reasonable compensation is required and some of the problems it can cause with the IRS, as opposed to just stating the information. I’ll be taking the information back to my firm to further explore the need of having justifications and reasoning for each S-Corporation.”
Jace Wilkins (Sweeney Wilkins and Associates)
“It is hard to find good CPE. Most of the time, I walk away satisfied if about 25% of what was said was relevant. This course was almost all relevant to me and my clients and it was very helpful. Since it was a free course, I was worried that it was just a disguised ad for a product. There was a product advertised but the bulk of the presentation was relevant regardless of whether you got the product or not.”
Richard Swofford (Ronald L. Tharp P.C.)
“GREAT GREAT GREAT. I have taught around the world to businesses and academia. This course could not be organized better! It is the way I would do it if I was doing the course preparations. He loaded us up with attachments and really helpful items.”
Boise Ashbrook (The Tax Office LLC)
“This was by far the best presented and most educational webinar I have ever been in. Thank you for much newly gained knowledge.”