RCReports - Reasonable Compensation

04/16/2026

Reasonable compensation issues don’t show up gradually. They show up all at once.

In most firms, RC only comes up:
→ During tax season
→ In “we’ll deal with this later” notes
→ With inconsistent follow-through

And then it disappears.
The firms that are getting it right have turned reasonable compensation into a repeatable service, not a scramble.

Join Nick Persichetti, Paul S. Hamann, and George Abdelmessih to learn how forward-thinking firms are doing exactly that 👇

📆 Apr 23
⌚ 2:00 PM ET

👉 Reserve your seat

Join us for this free webinar and learn how to turn Reasonable Compensation from a one-off task into a repeatable annual service with clear workflows, pricing and delivery.

04/13/2026

🚨 “It’s never happened to me” is not a defense in an S Corp audit.

We saw a case where a shareholder took:
❌ $0 in reasonable compensation
❌ $45,000 in distributions

The IRS response?

✅ Reclassified distributions as wages
✅ Assessed payroll tax + penalties (~$20K)
✅ Opened the door to auditing additional years

This isn’t rare anymore.
The IRS is actively targeting S Corps with low (or no) compensation and high distributions.

If you can’t defend the number, you’re exposed.

➡️ Read the full breakdown of what went wrong:

Learn from a real case where ignoring reasonable compensation led to costly IRS penalties.

01/28/2026

Join us tomorrow for Profit Machine Live where RCReports, Paul Hamann, will be speaking about how to Transform your tax practice Into a profit machine with 5 scalable revenue streams and a bonus session on how to sell it all.

👉 REGISTER HERE: https://tinyurl.com/mu2b7me6

More details:

In this session, Paul Hamann explains how accounting and tax firms can add Reasonable Compensation Reports as a high-ticket, advisory-driven revenue stream. Attendees will learn how these reports—often priced between $1,000–$2,500 per engagement—can move beyond a compliance requirement and become a strategic advisory service for S-Corp clients.

This session is ideal for firm owners looking to increase revenue per client while providing defensible, value-driven guidance that supports long-term client outcomes.

Here’s what you’ll discover:
✅ What Reasonable Compensation is and why it matters for S-Corp clients
✅ How Reasonable Compensation Reports create a high-margin revenue stream
✅ Typical pricing models and positioning strategies How to frame
✅ Reasonable Compensation as advisory—not just compliance
✅ Where this service fits naturally within an existing tax or advisory workflow

01/26/2026

On January 29th join us for Profit Machine Live! A one-day virtual summit for accountants and CPAs.

Profit Machine Live! brings together 6 industry experts to break down 5 scalable revenue streams accounting firms are using to grow beyond tax season... plus how to sell it all.

You’ll hear expert-led sessions on:
📌 Tax Advisory
📌 IRS Representation
📌 High-Ticket Advisory
📌 Reasonable Compensation
📌 Client Advisory Services (CAS)

Practical education, real strategies — with up to 6.0 CPE credit hours available as a bonus.

👉 Save your free spot: https://profitmachinelive.com/?utm_campaign=3NY37QJ&utm_source=RC-Reports&utm_medium=partners

01/14/2026

🚨 IRS CP261 Update: This isn’t just a confirmation letter anymore.

If you work with S Corps, you’ve seen the CP261 notice for years.
But in late 2023, the IRS added new language that’s basically a reasonable compensation warning — and it’s not optional.

Here’s what accountants should know:
✅ CP261 now reinforces that shareholder-employee pay must be reasonable wages
✅ The IRS can reclassify distributions as salary
✅ Ignoring it can mean back payroll taxes, penalties, and interest
✅ “60/40” isn’t a real rule — documentation is everything

If you can’t defend the number, you’re exposed.

➡️ Read the full breakdown + what to tell clients:
https://rcreports.com/blog/irs-cp261-update-what-accountants-should-tell-their-s-corp-clients/?utm_medium=organic-social&utm_source=facebook&utm_campaign=blog-irs-cp261-update

If you work with S corporations, you’ve probably seen the CP261 notice—the IRS letter confirming an S election. For years, it was a simple acknowledgment. That changed in late 2023. The IRS added language about reasonable compensation, and it’s not just a suggestion. It’s a compliance warnin...

01/01/2026

SALE EXTENDED! Our End of the Year Sale has been extended through January 7th!
Bring in the New Year with extra savings:
GET 20% OFF all plans + 5 FREE REPORTS with promo code: SECRET20

Start the year off strong with reasonable compensation reports that include:
✅ Clear salary figures backed by IRS-recognized data sources
✅ Full IRS audit protection
✅ Sample board resolution language plus additional considerations that may affect compensation
✅ Client-ready summaries with your company’s branding
✅ A comprehensive business summary tailored to your client’s situation, location, and industry

Grab the deal here → https://rcreports.com/pricing-ng/?utm_medium=organic-social&utm_source=facebook&utm_campaign=end-of-year-2025

12/21/2025

Our End of the Year Sale is here! This is your last chance to save on an RCReports plan in 2025!
SAVE 20% on all plans + Get 5 FREE REPORTS with promo code: SECRET20

Each reasonable compensation report you’ll receive:
✅ Clear salary figures backed by IRS-recognized data sources
✅ Client-ready summaries with your company’s branding
✅ A comprehensive business summary tailored to your client’s situation, location, and industry
✅ Sample board resolution language plus additional considerations that may affect compensation
✅ Full IRS audit protection

Get the deal here → https://rcreports.com/pricing-ng/?utm_medium=organic-social&utm_source=facebook&utm_campaign=end-of-year-2025

12/01/2025

⚡ Cyber Week is here! ⚡
Get 25% OFF all plans now through Friday, Dec 5th.
Upgrade your tech stack with a tool that pays for itself.
RCReports makes reasonable compensation simple, fast, and IRS-defensible with a quick onboarding so you're up and running in minutes!

Grab the deal here → https://rcreports.com/pricing-ng/?utm_medium=organic-social&utm_source=linkedin&utm_campaign=cyber-monday

11/28/2025

💰 Turn Black Friday into GREEN profits.
Today only: 25% OFF all plans with promo code: BLACK25

RCReports helps firms add an average $550 per client in annual fees.
With our Black Friday deal on the Professional Plan, you get 20 reports for $1,575 and generate $11,000+ in revenue.
That’s $9,000+ in profit back to your firm.

Don’t miss the most profitable deal of the year.

https://rcreports.com/pricing-ng/?utm_medium=organic-social&utm_source=facebook&utm_campaign=black-friday

11/25/2025

Our Black Friday Preview Sale is live - our BEST DEAL OF THE YEAR!
Today through Nov 27th take the guesswork out of reasonable compensation:
🦃 30% off all plans with promo code: TURKEY30

Why run your reports now?
• Still time to adjust 2025 payroll if needed
• Start 2026 with accurate, defensible reasonable compensation
• Every S Corp shareholder/employee needs a report every year

Make compliance easier and more affordable than ever.
https://rcreports.com/pricing-ng/?utm_medium=organic-social&utm_source=facebook&utm_campaign=black-friday-preview

10/31/2025

🕛 The clock is ticking… the Halloween Sale disappears at midnight! 🎃

Don’t let last year’s wages haunt this year’s return.
👻 Exorcise weak documentation and defend with confidence.

Today only:
😱 20% OFF plans with code SCREAM20
🍭 $100 OFF single reports with code CANDY100

If you can’t show your work, the past comes back.
Lay the ghosts to rest and keep your comp files audit-proof.

➡️ Generate your defensible report now:

https://rcreports.com/pricing-ng/?utm_medium=organic-social&utm_source=facebook&utm_campaign=halloween-sale