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What To Do if Your Client Didn’t Take Reasonable Compensation Last Year

WHAT TO DO IF YOUR CLIENT DIDN'T TAKE REASONABLE COMPENSATION LAST YEAR

Cost Free
Presentation Length 1.0 hour

Recorded DateOctober 17, 2024
CPE:Not available
(archived webinars do not offer CPE credits)
Subject AreaTaxes
Course LevelBasic
Course Description

Are you a new advisor handling an S Corp client, or perhaps a seasoned professional facing this common scenario: "My S Corp client didn't take reasonable compensation last year. Now what?” 

Knowing that reasonable compensation isn’t just a tax obligation, but a strategic financial decision, you need to be armed with expert knowledge to help your client navigate this situation. Join us to discuss IRS regulations, understand preventive measures, and address challenges within the year.

Learning Objectives:


  • Identify key questions to ask your clients before making an S corp election to help them stay proactive and make the best entity choice

  • Summarize proactive measures you can take as an accounting professional to help your clients stay compliant with S Corp regulations 

  • Evaluate scenarios for cash management when reasonable compensation has not been paid but should have been

  • Recognize complications and penalties, and leverage early detection to mitigate risks of late payroll tax deposits

  • Outline nuances related to health insurance and reasonable compensation, including vision and dental benefits, to optimize tax planning strategies

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PLEASE NOTE: ARCHIVED WEBINARS DO NOT QUALIFY FOR CPE
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John Morse has operated his own CPA firm John P. Morse, CPA, LLC, since 2014, specializing in tax, small business accounting, and campaign compliance. Prior to that, he served in the Colorado State Senate, most recently as the President of the Senate.  After graduating from college, he worked as a CPA for Fox & Company in Colorado Springs, CO, and then for Deloitte, Haskins & Sells in Denver as an audit manager.  So, he has roughly 20 years of CPA experience.   
 
Between the time he left Deloitte and started his own firm he served as a paramedic in Denver, a police officer, detective, and sergeant in Colorado Springs, CO, a police chief in Fountain CO, and the CEO of a nonprofit organization that worked to keep people over age 60 independent, and in their own homes for as long as possible. From there he entered the Colorado State Senate.   
 
Morse received his BSBA with an emphasis in accounting and finance from the University of Colorado. He earned an MBA from Regis University, a master’s degree in public administration from the University of Colorado, a master’s degree in taxation from Golden Gate University in San Francisco, and a PhD in public administration from the University of Colorado.   

About Our Sponsor

Rcreports
RCReports is a tool for Tax and Financial advisors to determine Reasonable Compensation for a client. RCReports provides a defensible position to an IRS challenge (for S-Corps), and is an excellent planning and valuation tool. RCReports synthesizes a proprietary blend of IRS criteria, Court Rulings, geographic data and our EXCLUSIVE database of wages to accurately assess Reasonable Compensation for S Corp, Small & Closely Held Business Owners.