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IRS Reasonable Executive Compensation

Course#: 12
Category: Tax Issues and Planning
Field of Study: Taxes
Audience: HR Managers, HR Generalists
Level of Difficulty: Advanced
Delivery Method: QAS Self Study
Prerequisites: Some college level courses with moderate algebraic training
Advanced Preparation: None
This taxation course reviews the U.S. Internal Revenue Service (IRS) federal income tax standards for reasonable compensation of stockholder-employees in closely held corporations. Reasonable compensation challenges result from the IRS suspicion that stockholder-employees have paid themselves so as to improperly reduce their taxes through underpayment or overpayment of compensation, depending on the type of corporation. This course looks at IRS reasonable compensation standards as applied to the following: a sole proprietorship, partnership, small business, limited liability company, subchapter S corporation, C corporation, and tax-exempt nonprofit organization. We teach reasonable-compensation analyses based upon executive compensation salary surveys, proxies, and IRS form 990’s.
Learning Objectives:
  • Identify how the IRS determines reasonable compensation
  • Determine the effect of incorporation choices on tax structures for executive compensation packages
  • Recognize the causes of compensation variance and the arguments that may be made for extraordinary compensation
  • Identify the company and personal federal income tax deductions that may be taken for stockholder required employee benefits and fringe benefits
  • Determine a maximum reasonable compensation estimate by job, industry, organization size, and location
  • Recognize business valuation strategies
*The Course Credit List displays credits and credit types offered by location.

Course Price:  Free!
Exam Price:  $49.00

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