Your S-Corp Salary Looks Reasonable, Until the IRS Disagrees.
Get a defensible Reasonable Compensation Report from Tuesday Tax Solutions, generated directly through RC Reports.
S‑Corp Owners: Your Salary Needs Documentation
Taking distributions without paying yourself a reasonable salary can trigger back payroll taxes, penalties, and interest.
One defensible compensation report can help protect your tax savings before the IRS reclassifies what you took.
Why Every S Corp Owner Needs a Yearly Reasonable Compensation Review
- Paying yourself too little can get expensive fast. If your salary is too low, the IRS may say some of your profit should have been wages. That can mean extra payroll taxes, penalties, and interest. An RC Report helps support reasonable compensation before that becomes a problem.
- Paying yourself too much can cost you money. If your salary is higher than it needs to be, you may be paying more payroll tax than necessary. A reasonable compensation review helps you avoid overpaying and keep more of what you earn.
- If you cannot explain your salary, you cannot defend it. Reasonable compensation is not something you should guess at. If the IRS asks how you chose your salary, you need a clear answer. RC Reports give you support for the number you use.
- Your reasonable compensation should keep up with your business. What made sense last year may not make sense now. If your profits, duties, or role have changed, your salary may need to change too. A yearly reasonable compensation review helps keep your pay up to date.
- Many accountants use RC Reports to perform an annual salary review on their S-Corp clients. Why? Because a reasonable compensation review gives them support for the salary reported on the return.
Regular Price: $650 Today: $250. No appointment required.
RC Reports, uses credible wage data, IRS-approved approaches, and supporting documentation to help back up a defensible S-Corp salary.
A look inside the report
Documented. Defensible. Delivered.
Every report includes a clear compensation figure, supporting data, and the methodology behind it — the same format trusted by tax pros nationwide.
Hey there, I'm Tina Dungy.
I'm Tina Dungy, founder of Tuesday Tax Solutions, a tax strategist, accountant, CFO advisor, and former VP of Human Resources with over 20 years of experience in compensation and benefits.
Reasonable compensation is not just a tax issue. It is a compensation issue. And before I ever worked in tax strategy, I built and reviewed compensation structures in the real world.
Your report is generated directly through RC Reports, but it is offered through Tuesday Tax Solutions with one goal: to help S-Corp owners stop guessing, support their salary decision, and make smarter, more defensible financial moves.
No jargon. No scare tactics. No "just ask your CPA" runaround. Just a clear, data-backed report that helps you understand what to pay yourself — and why it matters.