Eliminate the need for the IRS to pursue this issue
As a retired Internal Revenue Agent and Appeals Officer with over 33 years’ experience I can tell you that having a Reasonable Compensation Report from RCReports should eliminate the need for the IRS to pursue this issue during the audit process. One of the first things an examiner does during an audit is ask to see the corporate minute book. If the examiner sees that the taxpayer took the time to best determine what shareholders should be paid, the examiner would indicate this in their lead sheet of audit issues and not continue to pursue this issue.
RCReports saves time and money and should be a part of the corporate minutes for every corporation. IRS agents hate to start a corporate audit and see that the taxpayer kept no corporate minutes. This is a poor corporate practice that should be corrected by any responsible tax preparer. Do your clients a favor and use RCReports. Eliminate the need for the IRS to pursue this issue.
RCReports saved my client over $4,000 a year...
The first client that I had use RCReports.com spent 30 minutes entering the information and another 30 minutes with me going over the results and saved $4,000 per year. Considering the minimal expenditure of time and money, he was thrilled with the return on investment.
There was nothing tricky about it. He had a salary of $122,000 and was thinking about raising his pay as he had some personal bills and did not what to have a tax liability at the end of the year for distribution with no withholdings. The reasonable compensation worked out to be $79,000. This meant that without taking into account any potential raise there was a tax savings of $4,263. In future years the savings would be $4,843 as there will be no payroll tax holiday.
Another client had her Reasonable Compensation questioned by the IRS during an audit. When all the client’s information was entered into RCReports.com, her Reasonable Compensation Report fell within 5% of what the IRS agreed was reasonable. This was a great reality check as to the numbers that RCReports.com generates.
It is clear that the reports that RCReports generate are the most reasonable insurance out there.