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Intermediate S Corps: Reasonable Compensation

 

 

Course Year: 2013
Course Level: Intermediate
Prerequisite: NATP's Preparing S Corporation Returns course of basic knowledge of Form 1120S preparation
Advance Preparation: None
Delivery Method: Self-Study

Note: This course is also included in the Intermediate S Corporations course .

CPE Credits Designation Field of Study
IRS * 1 EA Federal Tax Law Topic
NASBA 0 CPA N/A
CTEC 1 CRTP Federal Tax Law Topic
CFP Board 0 CFP® N/A

 

* NATP will report CPE credits to the IRS for all PTIN holders. CPE is currently not mandatory for RTRPs or RTRP candidates and any option to register or participate in this program is strictly voluntary.

 

Fees: $30 for Members and $40 for Nonmembers

Summary

Reasonable compensation is a hot issue in the S corporation world. The IRS is on a mission to audit S corporations that do not pay shareholder-employees adequate wages. As a tax professional, you have a duty to review your S corporation clients’ compensation, including fringe benefits, and advise them of potential consequences of paying shareholders less than a reasonable wage. Also, learn to properly report fringe benefits to shareholders – both employees and non-employees. Your clients can sleep easy knowing you have them covered on this hot button issue.

Objectives
Upon completion of this course, the tax professional will be able to:

  • Determine if an S corporation is paying a reasonable salary to its shareholder-employees.
  • Identify an S corporation’s proper course of action when the S corporation does not have available funds to pay its shareholder-employees.
  • Report shareholder-employees’ compensation, including fringe benefits, on Forms 1120S and W-2.

For more information regarding refund, complaint and/or program cancellation policies, please contact our Member Services Department at 800.558.3402, ext. 3.

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PO Box 8002, Appleton, WI 54912-8002 Phone: 800.558.3402 Fax: 800.747.0001

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