Spotlight on reasonable pay – IRS job aid can be a useful resource for estimating owners’ compensation

Description

Abstract: Last fall, the IRS published Reasonable Compensation: Job Aid for IRS Valuation Professionals to help field agents audit owners’ compensation. Business valuators also use the job aid to help owners know how much their contributions are worth in today’s marketplace, based on their duties, skills and experience. This article provides an overview of how the IRS and valuators systematically approach this large discretionary expense and why it’s important.