Description:
One of the most important—and sometimes misinterpreted—aspects of S-Corporation taxation is reasonable pay. Additionally, it serves as a focal point for IRS audits. Tax law and official guidelines do not support many of the frequently quoted "rules of thumb" in the tax profession, such as paying oneself 60% of the company's profit as a salary and dividing the remaining 40%. In the case of an IRS examination, these simplistic calculations frequently fail to pass scrutiny.
In practice, regardless of the net profit of the company, pay given to shareholder-employees must be "reasonable" for the services provided. It takes a thorough and well-supported examination based on facts, industry norms, and judicial history to determine what constitutes reasonableness rather than adopting a set percentage.
This course offers a thorough examination of fair pay for S-Corporations. Participants will gain knowledge of the requirement's legal underpinnings, how to accurately determine and record adequate compensation, and how to successfully defend their conclusions in the event of an IRS audit or legal challenge. In order to shed light on the factors authorities take into account when determining what constitutes reasonable pay, we will examine significant court decisions and IRS stances. We will also offer useful resources and techniques for putting these ideas into practice in actual situations.
Learning Objectives:
Upon completion of this webinar, attendees will be capable of:
Why Should You Attend?
This course will enhance your knowledge and improve your capacity to confidently and clearly navigate this intricate yet crucial area of taxation, regardless of your level of experience advising S-Corp clients.
Who Should Attend?
Description:
One of the most important—and sometimes misinterpreted—aspects of S-Corporation taxation is reasonable pay. Additionally, it serves as a focal point for IRS audits. Tax law and official guidelines do not support many of the frequently quoted "rules of thumb" in the tax profession, such as paying oneself 60% of the company's profit as a salary and dividing the remaining 40%. In the case of an IRS examination, these simplistic calculations frequently fail to pass scrutiny.
In practice, regardless of the net profit of the company, pay given to shareholder-employees must be "reasonable" for the services provided. It takes a thorough and well-supported examination based on facts, industry norms, and judicial history to determine what constitutes reasonableness rather than adopting a set percentage.
This course offers a thorough examination of fair pay for S-Corporations. Participants will gain knowledge of the requirement's legal underpinnings, how to accurately determine and record adequate compensation, and how to successfully defend their conclusions in the event of an IRS audit or legal challenge. In order to shed light on the factors authorities take into account when determining what constitutes reasonable pay, we will examine significant court decisions and IRS stances. We will also offer useful resources and techniques for putting these ideas into practice in actual situations.
Learning Objectives:
Upon completion of this webinar, attendees will be capable of:
Why Should You Attend?
This course will enhance your knowledge and improve your capacity to confidently and clearly navigate this intricate yet crucial area of taxation, regardless of your level of experience advising S-Corp clients.
Who Should Attend?
Jason Dinesen (EA, LPA) is a tax nerd, entrepreneur, tax expert, and a well-known presenter of continuing education courses. He is known for his sharp tax interpretations, he is one of the quickest to bring the analysis of the latest tax updates and IRS guidance to the professional community. Jason has coached over 200,000 accounting, tax, and HR professionals on various topics of accounting, individual taxation, corporate taxation, professional ethics, and much more.
He has presented dozens of webinars on Form 1099 (for 10 years on this subject!); marriage in the tax code; tax updates; the new Form W-4, payroll updates, filing status, tax credits, and other issues relating to the modern-day household setting.
