Watch out for ‘black box’ compensation apps
During his session on reasonable compensation at the Forensic and Valuation Conference hosted by the Virginia State Society of CPAs, Neil Beaton (Alvarez and Marsal) discussed the various compensation benchmarking surveys and subscription databases.
Reilly examines key Tax Court case on reasonable comp
Nationally known valuation expert Robert Reilly (Willamette Management Associates) has done a comprehensive 17-page article on the Hood case—a Tax Court case with some important and practical guidance on determining reasonable compensation.
New Case Points Up Practice Opportunity in Reasonable Compensation
Opposing counsel attacked a valuation expert over his expertise in assessing reasonable compensation—and also criticized the data he used. The expert prevailed in this challenge, which illustrates that valuation experts can take on engagements in tax matters and shareholder disputes involving the fair market value of executive compensation.
Private firms pay a median $30,000 in board retainers
To support adjustments for reasonable compensation when doing private-company valuations, comparable data are necessary.
Normalizing Owner Compensation + RCReports Case Study
This webinar is for business valuators, business advisors who may be involved in shareholder litigation over compensation and tax advisors who help closely held businesses during IRS audits. This webinar explains the accepted methodologies for normalizing owner compensation in business valuations.
Is the IRS Job Aid on reasonable comp still relevant?
Released in 2014, the “Reasonable Compensation Job Aid for IRS Valuation Professionals” is an internal IRS document designed to help review compensation reported on federal tax returns.
How To Win a Reasonable Compensation Claim From the IRS
This fascinating blog from RCReports goes over an interesting case involving a small business, the IRS, and a difference of opinion regarding what constitutes reasonable compensation.
The Benefits of Establishing Reasonable Compensation
We find it perplexing how often S corp. owners—who invest in their business with an eye on the future and carefully analyze the cost/benefit of every decision—take a short-term, simplistic approach to reasonable compensation: Just pick the lowest possible number to minimize payroll taxes.
Masterclass in Normalizing Compensation
Three nationally known experts will explain how to determine reasonable compensation amounts. The principal author of the Job Aid, Mike Gregory, will explain the “IRS Job Aid on Reasonable Compensation” and share case studies with many tips and traps. One of the foremost national experts on reasonable compensation, Stephen Kirkland, will share insights and sources to help determine reasonable compensation for your clients. Paul Hamann will show how easy it is to use RCReports to ...
Normalizing Compensation for Closely Held Business Owners Using RCReports (Free Webinar)
Learn how to normalize compensation for owners of closely held businesses using the three IRS approaches outlined in the IRS Job Aid: Reasonable Compensation Job Aid for IRS Valuation Professionals using RCReports Software. Determining reasonable compensation for closely held SMBs is a straightforward process that relies on a basic understanding of the three different approaches for determining reasonable compensation and when and where they apply. Practitioners armed with this knowledge and the proper tools can ...
RCReports
Reasonable comp on IRS radar in S corp audits
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.
Reasonable comp: What’s in a title?
When using the market approach to determine replacement compensation, very often you begin by asking somebody his or her title.
Determining Reasonable Compensation Using RCReports Data
A user’s perspective on RCReports, a cloud-based software application designed to help calculate accurate and defensible reasonable compensation for closely held business owners.
Reasonable Compensation for Closely Held Businesses + RCReports Demo
Determining reasonable compensation for closely held small and medium-sized businesses is not a magical or mysterious process. In fact, it is a straight forward process that relies on a basic understanding of the three different methods for determining reasonable compensation and when and where they apply. Join Stephen Kirkland and Paul Hamann for this rewarding and rich session. Practitioners armed with this knowledge and the proper tools can easily determine reasonable compensation for any company.
RCReports Launches Study on Reasonable Compensation Valuation Practices
A provider of compensation data, RCReports, is doing a study designed to find out the challenges, needs, and current practice of business valuators when determining and defending reasonable compensation.
Study launched on reasonable comp valuation practices
RCReports is currently conducting a study to find out the challenges, needs, and current practice of business valuators when determining and defending reasonable compensation, Paul Hamann, the firm’s founder and president, tells BVWire.
Normalizing exec pay can be tricky—in and out of court
Doing normalization adjustments can be a very sensitive issue during a valuation engagement—and also in court, if the matter ends up there.
New edition of exec comp survey released
The 2018 Northwest Executive Compensation Survey, published by Milliman, is now available.
Milliman 2018 Northwest Executive Compensation Survey
November 2018 PDF (89 pages)
Milliman
Milliman
Key Points for Developing Compensation Valuation Report Content for a Healthcare Appraisal
No specific professional standards govern the content and requirements for appraisal reports in compensation valuation (CV), and there is very little professional literature on this topic. In the BVR/AHLA Guide to Valuing Physician Compensation and Healthcare Service Arrangements, author Timothy Smith looks to the business valuation standards and discusses how to adapt and expand on these standards to address areas that are unique to CV practice and appraisal issues.
Checklist for Initial Information Request to Analyze Replacement Compensation
The Tax Cuts and Jobs Act (TCJA) will trigger much greater scrutiny on what constitutes reasonable compensation for owner-employees of pass-through entities (PTEs).
How the IRS Determines Reasonable Compensation and What You Should Do
In the most up-to-date commentary on reasonable compensation and the IRS, Mike Gregory, the original champion with the IRS on this issue, gives commentary on how to determine reasonable compensation for federal tax purposes. With fresh insight from developing his latest book, Business Valuations and the IRS, Five Books in One, Gregory will cover three IRS Job Aids including highlights of the Job Aid on Reasonable Compensation. He'll then critique each and offer valuable insights ...
Tax Reform Puts Broader Spotlight on Reasonable Comp
Ron Seigneur and Kevin Yeanoplos, the co-authors of a guide on reasonable compensation, explain how tax reform has put more focus on the matter.
Normalizing Owner Compensation: Up Your Analysis
Owner compensation can be the most significant adjustment a valuation professional can make. Understanding and implementing the accepted normalization methods is a critical skill for both valuations and resolving shareholder disputes, but many avoidable errors are all too common. Compensation specialist Stephen Kirkland explains the basics and beyond in this session. Hear recommendations for improving efficiencies so your projects come in on time and on budget. Learn practical tips for documenting your analyses and bringing ...