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S Corporations: Determining Reasonable Compensation for Shareholder-Employees (RCSC)
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Learn about new guidance for determining “reasonable” compensation for the shareholder-employees of S corporations. Tax advisors often find themselves at odds with S corporation shareholder-employee clients when it comes to setting compensation. Typically, the shareholder-employee wants to minimize compensation in favor of distributions to reduce payroll taxes. Advisors, however, are faced with a body of governing authority that establishes that the shareholder-employee cannot avoid the impositi

 Export to Your Calendar 11/3/2017
When: Friday , 3 November , 2017
11:00:00 AM - 1:00:00 PM
Where: Webcast/Webinar
United States
Presenter: Tony Nitti, CPA
Contact: April Deneault
801-466-8022


Online registration is available until: 11/3/2017
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Description

Learn about new guidance for determining “reasonable” compensation for the shareholder-employees of S corporations. Tax advisors often find themselves at odds with S corporation shareholder-employee clients when it comes to setting compensation. Typically, the shareholder-employee wants to minimize compensation in favor of distributions to reduce payroll taxes. Advisors, however, are faced with a body of governing authority that establishes that the shareholder-employee cannot avoid the imposition of payroll taxes by forgoing "reasonable" compensation. Unfortunately, until recently this governing authority had offered little in terms of how to actually determine this "reasonable" compensation. This left sparse guidance upon which to rely when recommending salary amounts to their clients and many IRS audits and disputes have emerged over exactly what is "reasonable." In recent years, however, three cases have emerged that provide the direction tax advisors have sought. JD & Associates, Watson, and McAlary shed much needed light on the methodology the IRS and the courts employ in determining reasonable compensation in the S corporation arena, providing an analytical approach tax advisors can follow when guiding clients. In this two-hour online webinar, highly regarded tax practitioner, author and instructor, Tony Nitti, CPA, MST, will walk participants through the payroll tax advantages inherent in S corporations, the manner in which many taxpayers abuse this advantage, and the Service's approach in targeting shareholder compensation that it believes is too low. Most importantly, Mr. Nitti will examine the three cases highlighted above and discuss what tax advisors can learn from the approach used by the IRS and the courts to quantify the amount of a shareholder-employee's reasonable compensation. All tax professionals who advise clients on tax planning and compliance issues will benefit from this seminar. Time will be provided for you to ask questions directly to Mr. Nitti via email during the program.

Major Topics

 

  • Examining the opportunity for payroll tax savings inherent in S corporations
  • Reviewing classic taxpayer abuses and the Service's response
  • A detailed review of three critical cases that provide a roadmap taxpayers and their advisors can use to set reasonable compensation
  • Planning ideas and areas of concern when setting reasonable compensation

Learning Objectives
  • Identify the exposure a shareholder-employee in an S corporation faces if he or she does not receive reasonable compensation
  • Know how to quantify an appropriate amount of shareholder-employee compensation
  • Identify opportunities for saving clients payroll tax dollars while minimizing IRS audit exposure

Design For
CPAs, EAs, return preparers, tax attorneys, and other tax professionals who advise clients or businesses will benefit from this insightful webinar

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