Reasonable Compensation
Author: Susan Harper
| CPE Credit: |
1 hour for CPAs
1 hour Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2027 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
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.
Publication Date: August 2024
Topics Covered
- Reasonable Compensation Defined
- Tax Return Issues
- How IRS Identifies & Develops the Issue
- Key Factors for Consideration
- Importance of Factual Development
- Valuation Approaches
- Tax Law Arguments
Learning Objectives
- Explain Reasonable Compensation
- Identify the purpose and content of the IRS’s Reasonable Compenstion Job Aid
- Identify what the Courts consider when addressing the highly controversial issue
- Identify the importance of factual development of this issue
- Identify the type of corporation that may require a compensation allocation under IRS 482
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
None
Advance Preparation
None
