What If Your Client Didn't Take Reasonable Compensation

Overview

Are you a new advisor handling S Corp clients, or perhaps a seasoned professional facing this common scenario: “My S Corp client didn’t take reasonable compensation last year. Now what?” Knowing that reasonable compensation isn’t just a tax obligation, but a strategic financial decision, you need to be armed with expert knowledge to help your client navigate this situation. Join us to discuss IRS regulations, understand preventive measures, and address challenges within the year. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Highlights

The major topics that will be covered in this course include:

• Review best practices to help your client evaluate if an S election is an appropriate choice
• How to be proactive and head off common reasonable compensation issues before they happen
• Explore strategies for cash management if cash isn't available at year end
• Explore what’s at stake when reasonable compensation isn’t paid timely

Prerequisites

None

Designed For

CPA & EA practitioners who advise S Corps on the issue of Reasonable Compensation who are interested in learning about what to do if a client didn’t take reasonable compensation in a previous year.

Objectives

After attending this presentation you will be able to...

• Identify key questions to ask your clients before making an S election to help them stay proactive and make the best entity choice
• Determine proactive measures you can take as an accounting professional to help your clients stay compliant with S Corp regulations
• Evaluate scenarios for cash management when reasonable compensation has not been paid, but should have been
• Recognize complications and penalties, and leverage early detection to mitigate risks of late payroll tax deposits
• Illustrate nuances related to health insurance and reasonable compensation, including vision and dental benefits, to optimize tax planning strategies

Preparation

None