The IRS is auditing my S-Corp compensation, will they look at my industry competitors to determine if my salary was genuinely reasonable?

Question

Kohari Gonzalez Oneyear & Brown · Accepted Answer

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 condi For an answer applied to your exact numbers, bring this question to a licensed KGOB CPA in a focused session and leave with a clear next step.