US Edition“Reasonable Compensation” Rules for C Corps and S Corps: What Business Owners Need to Know - DWC CPAs and Advisors
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“Reasonable Compensation” Rules for C Corps and S Corps: What Business Owners Need to Know - DWC CPAs and Advisors
Setting reasonable compensation is one of the most important — and often overlooked — compliance issues for C corporation and S corporation owners. Getting it wrong can lead to IRS audits, reclassified income, back taxes, penalties, and a major headache. Whether you’re paying yourself too much or too little, the IRS may scrutinize your compensation strategy. Fortunately, with proper planning, documentation, and market research, you can significa…
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