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Reasonable Compensation Opinion
|Historical||Jan 22, 2016|
Getting Started Guide
You have an identical client id for this client. If this is a new client, please cancel and change the ID to something unique. If you want to work on this existing client, please click on "Go to ". You have to complete the current form before you can start another report for an existing client. Contact customer support with any questions.
You already have a completed for this shareholder. You can proforma and prepare an updated version by clicking on "Create proforma copy".
Salary Opinion Found
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If you would like to prepare another salary opinion for this client, please open the client through the dashboard and click on the proforma button.
If this is a new client (e.g. different shareholder for the same business), please edit the client id, (e.g. replace MILLER123 with MILLER123b).
Tips and Best Practices on How to Use the Salary Opinions
- Look over the reasonable compensation opinion and contact our company if the amount does not seem right. We can adjust the salary opinion at no cost to you. Click on "Chat Now' to launch a live chat session.
- Schedule a meeting with your client to go over the salary opinion. The client will have questions on how to adjust their salary and distributions. The conversation may spill over into other tax planning areas. Alternatively, you can email a pdf of the opinion letter to your client and use our sample copy under the Communications link to properly introduce it.
- Launch a campaign. Most CPAs choose to prepare salary opinions for all of their S-Corp clients. This is a good way to maximize tax savings, as well as protect you and your client from a possible audit. Please watch the short marketing videos under the Training link at the top of your page.
Choose The Right Product
Average Salary Statement
- New Hire
- Geographic concentration
- Weighted average of activities by time
- Over 800 occupations to choose from
- NOTE: This product is not a Reasonable Compensation Opinion
Reasonable Compensation Opinion
- Average Salary Statement
- 6-page opinion letter
- Over 30 variables considered
- CPA-produced and proofed
- Audit Representation (see terms)
- NOTE: No work papers unless client is audited
IRS Reasonable Compensation Audit Support
- Reasonable Compensation Opinion
- One hour of consulting time
- Explanation of formulas and variables
- Coaching on presenting to the IRS
- Help crafting client engagement letter
- Additional consulting time if needed
Engagement letter to follow
Note: You are requesting an average salary statement, not a reasonable compensation opinion. The average salary is only one variable needed to prepare a reasonable compensation opinion. Additional variables such as distributions / dividends, financial performance of company, number of employees, etc. should be factored into the overall analysis when preparing a salary opinion.
Our website and video training tools are set up to support the preparation of reasonable compensation opinions for S-Corps. The average salary statement is not supported on the website. Please contact us if you have any questions regarding the average salary statement. Thank you.