If you have been reading my blog over the last few months, I have spent a lot of time discussing S Corporation ‘reasonable compensation’ issues for corporate shareholders and why the IRS is starting to target this issue. I found a really good discussion and explanation of how ‘reasonable compnsation’ works in this posting on AccountingToday by David J. Kautter. He spells it out pretty good:

http://www.accountingtoday.com/news/Best-Practices-Setting-Reasonable-Compensation-Small-Business-Owners-69219-1.html

If you are an S Corporation owner and have looked at this article, now you have enough information to be able to ask, what do I do! If you want to call or email me, we can talk about planning issues that should help in the future.

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