IRS examiners looking at S corps now have an item on their audit checklist asking for justification for owner’s compensation, according to RCReports in its December email newsletter. The “2020 Annual Audit Plan” from TIGTA says the agency will look at whether the IRS has implemented policies, procedures, and practices to ensure that compensation is considered in examinations of closely held S corporations and their shareholders. RCReports is a cloud-based software application designed to quickly calculate accurate and defensible reasonable compensation for closely held business owners. Its wage database covers hundreds of industries and thousands of job descriptions and provides users with robust and independent data on which to base a client’s reasonable compensation.