Are You at Risk for Preparer Penalties?
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Are You at Risk for Preparer Penalties?
- April 1, 2019
- Posted by: RCR Admin Team
- Category: Blog
By Paul S. Hamann & Jack Salewski, CPA, CGMA
Ask yourself a few simple questions:
- Have I educated all my S Corp clients about Reasonable Compensation?
- Is each client’s Reasonable Compensation figure, on its face, reasonable based on the client’s training, experience, responsibilities, and time devoted to the company?
If you answered ‘yes’ to both questions you are probably not at risk for a Preparer Penalty. There are a few more questions you should consider before you know if you are out of the woods. To help evaluate your risk and avoid preparer penalties, please use our complimentary Preparer Penalty Check List and Stress Test (COMING SOON).
If you answered ‘no,’ you may be at risk for a Preparer Penalty. We have interviewed preparers who have been assessed $5,000 penalties, and here’s what their experience can teach you:
