10 Reasonable Comp Points to Discuss with Your Clients Now!
- November 1, 2019
- Posted by: RCR Admin Team
- Category: Blog
By Paul S. Hamann & Jack Salewski, CPA, CGMA
Without an accurate Reasonable Compensation figure, tax planning is just a guess.
1. Educate. Send an issue letter so your clients are thinking about Reasonable Compensation before you meet.
- Most S Corp owners, once they understand the issue, will follow your advice as to their Trusted Advisor. For those who don’t, sharing the issue letter will document your attempt to do so.
- Download Issue letter HERE
2. Stress Test. Is your client’s Compensation figure Reasonable?
- If it fails the stress test, it likely won’t survive a Reasonable Compensation challenge.
- Download Stress Test HERE
3. Research. Provide an accurate, independent Reasonable Compensation Report to each shareholder-employee.
- Research and documentation are now a “must-have” with the passage of the TCJA. (more…)