S Corporation Reasonable Compensation: How Much Is Enough?

Presented by Tony Nitti, Partner at WithumSmith+Brown

Since Revenue Ruling 59-221 – which exempts S corporation pass-through income from self-employment tax – was published, S corporation shareholder/employees have had tremendous motivation to minimize compensation in favor of distributions. The IRS immediately went on the offensive, recharacterizing distributions to compensation in order to collect payroll taxes. For years, there was no concrete guidance on how to compute “reasonable compensation” for a shareholder/employee of an S corporation, but recent court decisions have provided a quantitative roadmap practitioners can use to advise their clients in setting compensation.

In this seminar, attendees will learn the history of S corporation reasonable compensation issues, culminating in the recent Watson case, which finally answers the question: How much is enough? Basic knowledge of S corporation taxation is recommended.

This course qualifies for 1.0 hour of CPE in the Taxes field of study and is in the process of being certified for 1.0 hour of CLE. It will be delivered in a live group method on April 26, 2017, from 5:10 to 6:00 pm.

This course is designed to comply with Colorado State Board of Accountancy and NASBA CPE, and Colorado CLE standards. Participants are encouraged to confirm eligibility compliance with their jurisdiction. Refunds will be issued if the event is cancelled by FTL or for cancellations received 48 hours before the start of the event. Questions, concerns, and complaints may be submitted to Info@FutureTaxLeaders.org.

To register to attend, click here. This program is free for FTL members and up to two guests and $35 for non-FTL members.