The Unintended Consequences of Not Having Reasonable Compensation (Part II)
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The Unintended Consequences of Not Having Reasonable Compensation (Part II)
- June 1, 2015
- Posted by: RCR Admin Team
- Category: Archived
By Jack Salewski, CPA, CGMA & Paul S. Hamann
Calculating Reasonable Compensation for an S Corp; C Corp; Small or Closely-Held business owner is not just about making the IRS happy. There are many unintended consequences of not having reasonable compensation. They can be broken down into current; long-term; valuation; entity choice; and preparer issues. In Part 1 we discussed the current and long-term issues. This month we take a look at valuation issues; entity choice; and the potential impact on the tax preparer.
