S-Corp Shareholder Reasonable Compensation FLEXCAST

Overview

Navigating the complexities of tax compliance for S-Corp shareholders’ reasonable compensation is a challenging aspect of corporate taxation. This course is designed to address the intricate details and critical components necessary for understanding and complying with these requirements. This course delves into various factors such as the services provided by the shareholder, the S-Corp’s profit, other income earned by the shareholder, and distributions paid. Participants will learn to develop comprehensive plans and processes for determining each S-Corp shareholder’s reasonable compensation, ensuring compliance with IRS standards. The course also offers strategies to support lower salaries and evaluate audit exposure risks, providing a clear understanding of the IRS’s considerations in a reasonable compensation audit, including nationwide salary data, return on capital invested, and distributions recorded as loans. This session is crucial for professionals seeking to enhance their expertise in S-Corp taxation and safeguard their clients from potential compliance issues.

Highlights

Tax planning for S Corp. Audit triggers. Compliance regulations. Social security benefits.

Prerequisites

None.

Designed For

CPAs, financial professionals, enrolled agents, and attorneys.

Objectives

Develop comprehensive plans and processes for determining each S Corp shareholder’s reasonable comp. Identify key components of the S corp business model and the shareholder’s services to the S corp which may impact reasonable comp compliance. Learn strategies to support lower salaries and how to evaluate the audit exposure risk for clients. Understand other issues the IRS considers in a reasonable comp audit; determining reasonable salary from nationwide data, return on capital invested, and distributions recorded as loans.

Preparation

None.

Notice

This is a FlexCast (no exam required) and may be viewed only Monday - Saturday, 5am - 5pm PT. You may take up to one year from the date of purchase to complete the course. Pause your FlexCast and resume at a convenient day during the hours above. Partial credit for 2+ credit courses: If you are unable to complete the course in one sitting, partial credit can be awarded (minimum of one credit). To earn the remaining credits, you must return later and start the course from the beginning. Use chat to ask questions of a subject matter expert during the program.