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- STEP 01
Buy the report for $250
Quick checkout. No appointment, no sales call.
- STEP 02
Receive your instructions
You receive instructions to complete the RC Reports questionnaire.
- STEP 03
Complete the questionnaire
Answer questions about your business, role, and work performed.
- STEP 04
Report is generated
Once the questionnaire is complete, the report can be generated quickly through RC Reports.
- STEP 05
Keep it with your records
Use it to support payroll planning conversations with your CPA or payroll provider.
What happens when you guess instead of document
Marcus, the owner of Marcus’s Auto Repair, had a gut feeling that $40,500 was a reasonable salary for him. He didn’t have any evidence to support it, but his accountant agreed, and he didn’t think anyone would check anyway.
Unfortunately, despite being close to correct, he faced months of stress and expensive accountant fees when the IRS audited his S-Corp. This is the danger of the “set it and forget it” approach to reasonable compensation.
When the IRS selected Marcus’s Auto Repair for an audit, they recalculated his reasonable compensation at $67,000, which would have cost him $10,000 in additional taxes, penalties, and interest.
His new accountant ran a compensation report that determined his reasonable compensation to actually be $41,833 — and successfully argued the case with the IRS based on data and facts.
Marcus learned that relying on gut feelings and honest intentions wasn’t enough. Documenting his figures with facts from a credible source would have saved him a lot of stress, time, and money.
*Identifying details have been changed for privacy purposes.
No supporting documentation.
Triggered $10,000 in taxes, penalties, and interest.
Defensible figure, successfully upheld with the IRS.