At the most recent National Association of Tax Professionals annual conference, I noticed that although I was in seminars with seasoned professionals — many of whom know a lot more than I do in certain areas of tax law — there was an overall lack of understanding of the topic of Reasonable Compensation for S-Corp shareholders. Misinformation abounded, with “tips and tricks” rather than legal precedent guiding the way.
Some years ago, I took a series of classes presented by Paul Hamann, President of RCReports Inc., and learned all about the court cases that have defined the issue of Reasonable Compensation over the years. I chose to subscribe to their annual service (no, I do not get any special favors or payment for promoting their product — I’m just a fan)… but even if I hadn’t, the education I received on the topic helped inform my client advisory practice and it made me a better tax preparer and CPA.
Turns out that he’s got another class coming up with CPA Academy in a couple of days, and I wanted to encourage you to take it, and to spread the word (this advice holds whether you’re an S-Corp owner or a CPA/ EA/ Accountant/ Tax Preparer/ Bookkeeper).
Thursday, August 29, 2019
12:00 PM ET – 11:00 AM CT – 10:00 AM MT – 9:00 AM PT
FREE – 2.0 hours CPE / 2 CE
Between 2010 and 2013 a flurry of court cases and IRS enforcement brought the issue of ‘What is Reasonable Compensation for a Shareholder-Employee of an S Corp’ out of the shadows and placed it forefront as a priority issue for CPA’s, Tax and Financial advisors to cover with their clients. There are tools today that take the guesswork out of determining Reasonable Compensation, and help build rapport and trust with your clients.
– Review why Reasonable Compensation has become a priority for the SB/SE division of the IRS
– Demonstrate the basic advantages of Distributions vs. Salary/Wages
– Identify options for determining Reasonable Compensation
Each month the City of Chicago offers twice-weekly (Wed & Fri) FREE business education workshops presented by experts in private practice as well as representatives from various city departments. There are quite a few good ones this month — see the list below — and they’re all offered at City Hall (right downtown and near public transit). To register for any of them, email BACPoutreach@cityofchicago.org or call 312.744.2086.
City Inspections – Ask Questions, Get Answers Wed, September 4, 3:00 PM – 4:30 PM City Hall, 121 N. LaSalle St. – 8th Floor, Room 805 Presented by the City of Chicago To operate a successful business in Chicago you need to know what it takes to maintain compliance. Officials from several City departments will provide insight on how to operate safely, stay compliant, help prepare for inspections and highlight the do’s and don’ts of operating a business.
Side Hustle Success
Fri, September 6, 9:30 AM – 11:00 AM
City Hall, 121 N. LaSalle St. – 11th Floor, Room 1103 Moderated by Kenya Merritt, Chicago Chief Small Business Officer In this workshop you will hear from entrepreneurs who have turned their passion into a profit. This workshop is targeted for entrepreneurs looking to establish a business within the creative or arts sector. Our panelists will share their strategies on how they moved from side hustle to success.
Small Business Center on the Road Expo 2019-09-07 Harry S Truman College, 1145 W Wilson Ave – McKeon Lobby The Small Business Center on the Road Expo is free and open to the public. It provides new and existing entrepreneurs resources to start or grow their business here in Chicago. For more information and to register go to www.chismallbizexpo.com
Social Media Workplace Policies & the Law Wed, September 11, 3:00 PM – 4:30 PM City Hall, 121 N. LaSalle St. – 8th Floor, Room 805 Presented by Charles Krugel, a Management Side Labor, Employment and Human Resource Attorney This is an open discussion with human resources lawyer Charles Krugel concerning: what courts and government regulators are saying about workplace social media policies, employee content & account ownership (who owns what); how a business can protect its social media image; what should a business do if an employee discusses something inappropriate; what businesses should do to control how & who uses its social media & related hardware or equipment; & what are the areas of liability for businesses and how to avoid or minimize liability.
Access to Capital and Avoiding Predatory Financing
Fri, September 13, 9:30 AM – 11:00 AM
City Hall, 121 N. La Salle Street – 11th Floor, Room 1103 Presented by Geri Aglipay, The Small Business Majority Learn about how to navigate safe financing options in Chicago to start and grow your business. Understand how to avoid predatory small business funding and where to go for free assistance. An overview of crowdfunding will also be provided.
Como Lanzar Su Negocio En Chicago
Wed, September 18, 3:00 PM – 4:30 PM
City Hall, 121 N. LaSalle St – 8th Floor, Room 805 Presentado por ESDC – Economic Strategies Development Corporation (Workshop will be presented in Spanish) Exploramos los primeros pasos para empezar su negocio, incluyendo: primeros pasos, investigación de mercado, plan de negocio y recursos estatales gratis, ademas aprenda acerca del tipo de licencia que necesitará y los tipos de estructura legal que existen.
How To Be A “YouTuber” For Your Business, Video Marketing 101
Fri, September 20, 9:30 AM – 11:30 AM
City Hall, 121 N. LaSalle St. – 11th Floor, Room 1103 Presented by JinJa Birkenbeuel, Founder, The Honest Field Guide Podcast and CEO, Birk Creative This YouTube workshop is for small business owners with a working website who want to learn how to create custom content and also create YouTube ads for your business. Learn how to create a business YouTube channel, understand the anatomy of a YouTube channel, learn how to use tags, and best practices for shooting a basic video. You will also learn how to promote your video on YouTube and other channels.
Everything You Need To Know About Business Insurance
Wed, September 25, 3:00 PM – 4:30 PM
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805 Presented by Sandra Cavato Insurance Agency In this session, attendees will learn the coverages needed for their business. We’ll discuss the right questions to ask your insurance professional and how to protect yourself and your business against lawsuits.
Buying and Selling a Business: Find, Evaluate and Negotiate
Fri, September 27, 9:30 AM – 11:00 AM
City Hall, 121 N. LaSalle St. – 11th Floor, Room 1103 Presented by Lema Khorshid, Fuksa Khorshid, LLC Do you want to buy a business and don’t know where to start? In this step-by-step seminar learn how buying a business can be an alternative to starting up a new business. Also, learn how to effectively analyze new business opportunities and understand a business purchase contract so that you can quickly close the deal.
Also, in case you weren’t aware, BACP offers a Business Start-Up Certificate Program, designed to give business owners the essential elements in starting and growing a business. Attend nine workshops at BACP and learn the essentials of business planning, financing, marketing, legal issues, technology and more. Complete the program workshops within six months and earn your certificate, as well as get free advice on your business plan. You can register for the Business Start-Up Certificate Program at any BACP workshop. Learn about the full set of BACP offerings here.
The big news of the week for tax professionals is that the IRS is going back to a more traditional version of the 1040 form instead of the mess of six additional schedules created by the TCJA.
