conniem123
Employee Tax Expert

Self employed

There are no specific guidelines for reasonable compensation in the Code or the
Regulations. The various courts that have ruled on this issue have based their
determinations on the facts and circumstances of each case.

 

Here is an article that lists some of the factors used by the IRS to determine reasonable compensation.

https://www.aicpa.org/resources/article/s-corporation-reasonable-compensation

 

I hope you find this information helpful!

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