S-Corp Reasonable Compensation

[BulldogTom]

@Terry D EA  Thanks for this conversation.   @DANRVAN  I do enjoy reading your analysis of an issue.   It reminds me of something I know but sometimes don't follow - Always start with the code, then move to the regs and then to lesser authority.   

I really enjoyed reading this as it unfolded.

Tom
Longview, TX

[Terry D EA]

There is one other important thing I have learned from this. Be careful of the webinars you register for or attend. The NAEA offers a lot and some are very good. On more than one occasion, I have noticed the webinar was put together to sell a product. Just give you enough information in an attempt to get you hooked. I didn't need the CE for this as I have gone well past the minimum requirements for this year. My curiosity got me as reasonable compensation is a good topic and something we all face. This webinar was two hours long, good court case information, the supposed horror story I mentioned, and at the end there it is, buy our software to calculate reasonable compensation. I don't know about anyone else, but I do not want my inbox to be plugged up every day with marketing messages that takes some time to delete.

 

[Margaret CPA in OH]

I hear you about marketing with seminars and webinars. I take many webinars for many reasons - cost, convenience, topic variety, etc.  And then do get on the email marketing list to which I promptly unsubscribe.  The valuable information and reference links provided still outweigh the annoyance of having to unsubscribe.  Heck, even the AICPA and Ohio Society of CPA's (member of both) more than frequently push 'products' but I accept that and just delete what doesn't interest me.  The title or first few words or lines are clues!

[Catherine]

I wonder if it was a shorter version of the same "reasonable compensation" talk given at the NE IRS Rep Conference just a couple of weeks ago. Frankly, I paid more attention to my cross-stich project sewing than that particular talk, as I gave up working on partnerships and corporations some years ago. Didn't do enough at that time for it to be worth keeping up with the myriad of changes, so I gave them all away. But it was definitely a group with software, they had court cases, and a number of people were interested in the software. Guy next to me was thinking about it - but his niche is small corporation consulting, advising, and evaluating. For him having an evaluation/recommendation tool rather than having to evaluate every case individually, may well have been worth the cost.