Reasonable Salary
“The IRS is auditing my S-Corp compensation, will they look at my industry competitors to determine if my salary was genuinely reasonable?”
In an S-Corp compensation audit, the IRS often looks at how an owner’s pay compares with what similar businesses pay for comparable work, but the analysis is usually broader than a simple competitor comparison. Factors like the owner’s duties, the company’s size and profitability, local market conditions, and whether the business has employees or distributions can all affect the picture. The IRS may also review how the salary was set, what records support it, and whether compensation changed as the business grew. The exact approach typically depends on the facts and the industry involved. A targeted review with a CPA can turn the uncertainty into a clear next step.
In your 60-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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