Reasonable Salary

I received a letter from the IRS questioning the low ratio of my S-Corp distributions to my salary, what documents prove my pay was reasonable?

An IRS letter about an S-Corp’s salary and distribution mix often turns on whether the compensation was supported by the business facts, not just the payroll number itself. Documents that commonly matter include payroll records, job descriptions, time logs, officer duties, comparable pay data, and f

Talk it through with a licensed KGOB CPA and leave with a clear next step. Browse more questions