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Q: When do you need a reasonable compensation analysis for an S-corp? You need a reasonable compensation analysis when you own an S-corp and take distributions, especially if your salary is low compared to the business’s profits or your role in the company. The IRS expects shareholder-employees to be paid a “reasonable” wage for the work they perform before taking distributions. A reasonable compensation analysis helps document a defensible salary based on duties, time, indus

Q: When do IRS notices require professional CPA representation? IRS notices require professional CPA representation when the issue is time-sensitive, involves material dollars, suggests an audit or enforcement action, or requires technical tax and documentation to respond correctly. This includes notices about underreported income, penalties and interest, payroll tax issues, identity verification holds, missing returns, or disputes that need formal correspondence. A CPA helps