26
Date: Wednesday, August 26, 2020
Time:
10:00am-2:00pm PT / 1:00pm-5:00pm ET
Format: A BVR Web Workshop

Earn 4.5 CPE credits
Registration for this program is closed.
Purchase a Training Pack from this event*.
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More information is available below

Featuring  (click image for bio)

Stephen Kirkland
CPA
Atlantic Executive Consulting
Paul Hamann
RCReports
Michael Gregory
ASA, CVA
Michael Gregory Consulting

About This Program

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 develop reasonable compensation amounts for the IRS, business valuations, and other uses. These reports have been extremely successful proactively when used by business valuers in the preparation of a report for tax filing purposes. They have also been used to resolve negotiated issues with the IRS retroactively when compensation has been raised on audit. This extended four-hour session will provide what you need to know to address reasonable compensation for valuations, the IRS, and other purposes.

Agenda

  • What makes owner pay one of the most  interesting topics in business valuation?
  • Tips to get started
  • Three approaches
    • Market
    • Cost
    • Income
  • Gathering the facts
  • Questions for compensations
  • The Factors - 9 examples
  • Goodwill - professional or enterprise?
  • Comparability data- deep dive
  • Other sources of compensation data
  • Arm’s length?
  • Catch-up pay
  • Employee benefits
  • Personal guaranty of corporate debts
  • Collateral damage
  • Case study of a custom home builder
  • In-depth analysis of the owner using the market and income approaches
  • In-depth analysis of related parties (owner’s gown children) using the cost and market approaches
  • When to apply professional judgment: Adjusting compatibility data
  • Explore sources of data, defensibility and reliability
  • IRS Reasonable Compensation Job Aid
  • Suggested readings by the IRS
  • IRS Reasonable Compensation Job Aid- deep dive
    • Section I: Purpose, Background and Case Coordination
    • Section II: Identifying a Reasonable Compensation Issue
    • Section III: Developing Reasonable Compensation Issues
    • Section IV: Taxpayer Arguments for Reasonable Compensation Issues
    • Section V: Consideration of Penalties
    • Section VI: Focusing Specifically on Not-For-Profits
  • Beware IRS and penalties on appraisers
  • Who decides on penalties on appraisers at the IRS
  • Example on an estate valuation
  • When is it an issue with the IRS?
  • What is compensation?
  • Fringe benefits, bonuses and incentives
  • Market, income and cost approach to reasonable compensation
  • Key indicators for market approach
  • How to begin finding information
  • Review of information
  • Sources of information
  • Income approach
  • Cost approach
  • Reconciliation
  • Five common concerns
  • Additional thoughts on loans
  • Exempt organizations
  • Example highlights
  • Summary
  • Important take away information

Learning Objectives

  • Learn how the IRS and Tax Court approach reasonable compensation
  • Understand how to avoid triggering an audit and how to respond when compensation amounts are challenged
  • Know where to find and how to sort compensation comparability data
  • Learn how to determine reasonable compensation from national experts in the field

Single Connection Policy

Admission to this event authorizes one computer and phone connection for one location. These connections may be transferred users and/or locations. Multiple concurrent connections for a single admission registration are not allowed.

Multi-User CPE Policy

Admission to this program includes one CPE certificate for one individual. Any additional listeners requesting CPE must pay a processing fee assessed at the completion of the online CE survey for this course.

CPE Processing Fees may be bypassed by entering a valid, unused CPE Authorization Code (for single event purchasers) or by logging into BVR's website (for subscribers to BVR's Training Series).

CPE Information

Prerequisites: Knowledge of Business Valuation
Program Level: Advanced
Preparation Required: None
Delivery Method: Group Internet-Based
Recommended CPE: 4.5 Credit Hours (Accounting Technical)

Closed Captioning:

BVR now has closed captioning on all 2019 past programs. To try out this enhancement, subscribers can login to the Desktop Learning Center, select a program, and click play video. The captions will start to play automatically, and can be disabled from the player per your preference.


Business Valuation Resources is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
NASBA Sponsor


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