reasonable-compensation

Notes on reasonable compensation studies: evidence, calculation, review, and the workpapers a firm keeps.

Reasonable Compensation
Reasonable Comp Audit Defense: Surviving IRS Reclassification
What happens when the IRS reclassifies S-corp distributions as wages, what it costs, and the contemporaneous evidence that makes a salary defensible.
Bobby Huang08/24/202615 min read
Reasonable Compensation
How to Determine Reasonable Compensation for an S-Corp Shareholder
The step-by-step method firms use to set an S-corp shareholder salary: the cost, market, and income approaches, wage evidence, and documented judgment.
Bobby Huang08/24/202617 min read

Reasonable Comp Audit Defense: Surviving IRS Reclassification