S-Corp Shareholder Reasonable Compensation

2 Credits: Taxes


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S-Corp Shareholder Reasonable Compensation

Course Level
CPE Credits

2 Credits: Taxes

Course Description

Navigating the complexities of tax compliance for S-Corp shareholders’ reasonable compensation is a challenging aspect of corporate taxation. This session is designed to address the intricate details and critical components necessary for understanding and complying with these requirements. It delves into various factors such as the services provided by the shareholder, the S-Corp’s profit, other income earned by the shareholder, and distributions paid. Participants will learn to develop comprehensive plans and processes for determining each S-Corp shareholder’s reasonable compensation, ensuring compliance with IRS standards. The course also offers strategies to support lower salaries and evaluate audit exposure risks, providing a clear understanding of the IRS’s considerations in a reasonable compensation audit, including nationwide salary data, return on capital invested, and distributions recorded as loans. This session is crucial for professionals seeking to enhance their expertise in S-Corp taxation and safeguard their clients from potential compliance issues.

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Learning Objectives

Upon successful completion of this course, participants will be able to confidently advise clients regarding their S corp reasonable comp compliance and tax savings opportunities.

  • Develop comprehensive plans and processes for determining each S Corp shareholder’s reasonable comp.
  • Identify key components of the S corp business model and the shareholder’s services to the S corp which may impact reasonable comp compliance.
  • Learn strategies to support lower salaries and how to evaluate the audit exposure risk for clients.
  • Understand other issues the IRS considers in a reasonable comp audit; determining reasonable salary from nationwide data, return on capital invested, and distributions recorded as loans.
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Course Specifics

Course ID
Revision Date
January 15, 2024


Advanced Preparation


Compliance Information

NASBA Provider Number: 103220
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-U-02119-22-O
IRS Federal Tax Update Credits: 2
CTEC Provider Number: 2071
CTEC Course Number: 2071-CE-1700
CTEC Federal Tax Update Credits: 2

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.

CTEC Notice: California Tax Education Council DOES NOT allow partial credit, course must be taken in entirety. Western CPE has been approved by the California Tax Education Council to offer continuing education courses that count as credit towards the annual “continuing education” requirement imposed by the State of California for CTEC Registered Tax Preparers. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, by phone toll-free at (877) 850-2832, or on the Internet at

Meet The Experts

Jane Ryder, EA, CPA is the owner of Brass Tax Ryder Professional Group, Inc., a full service tax and accounting firm. Brass Tax (not affiliated with Brass Tax Presentations) has been providing tax and accounting services since 1980. Jane received a BS in Business Administration (Accounting) from SDSU and is currently licensed with the California State Board of Accountancy and with the Internal Revenue Service as an Enrolled Agent. Brass Tax is a business centric practice, preparing and consulting on the preparation of Corporations, S-corporations, LLC’s, Partnerships, and Trusts. She also specializes in IRS and state agencies collection problems, payment …