Reasonable Compensation (Completed)

What would ordinarily be paid for like services by like organizations in like circumstances? In short, what would a third party pay someone to conduct the activities Sounds so simple! Explore this highly subjective and often controversial reasonable compensation issue with Susan Harper, Certified Fraud Examiner, and former IRS Internal Revenue Agent of 34 years. Understand how the IRS will identify and approach the issue while considering key factors suggested by provisions of the Internal Revenue Code and the associated regulations. With more than 20 years instructing CPE courses, Susan will deliver an entertaining and informative discussion sharing court decisions on point as well.

Topics Covered

• Reasonable Compensation Defined
• Tax Return Issues
• How IRS Identifies & Develops the Issue
• Key Factors for Consideration
• Employee’s role in the company
• External comparison of employee’s salary
• Character and condition of company
• Conflict of interest
• Importance of Factual Development
• Valuation Approaches
• Market
• Reasonable Compensation Arguments

Learning Objectives

• Define Reasonable Compensation
• Explore the purpose and content of the IRS’s Reasonable Compenstion Job Aid
• Understand what the Courts consider when addressing the highly controversial issue
• Consider the importance of factual development of this issue

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
None

Advance Preparation
None