S Corp: Shareholder Reasonable Comp., Health Insurance, Reimbursed Expenses & Tax Planning
Author: Jane Ryder
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
This course discusses many considerations regarding tax compliance for S corp shareholders' reasonable compensation, health insurance, reimbursed expenses, and tax planning. With examples and details to understand the critical components of compliance in these matters. For reasonable comp; services provided by the shareholder in relation to services performed by other employees, profit of the S corp, other earned income of the shareholder, shareholder distributions and other considerations. Also, review 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. Learn strategies to support lower salaries and understand evaluating the exposure risk for clients. For health insurance, reimbursed expenses and tax planning we'll review detailed compliance and tax savings related to these issues.
Publication Date: January 2025
Topics Covered
- S Corp year end planning worksheet
- Reasonable compensation and health insurance compliance for S corps
- S corp shareholder reimbursement plans
- Tax savings of S corps
Learning Objectives
- Identify the tax savings for keeping shareholder salaries lower
- Identify IRS exposure related to shareholder reasonable compensation
- Identify compliance issues related to shareholder salaries, health insurance and reimbursed expenses
- Identify best practices for helping clients understand and comply with compliance regs
- Recognize how to handle and defend a reasonable compensation audit
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
