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SAFE HARBOR REBUTTABLE POSTION
Our firm provides compensation analysis to your principal employees to insure that their compensation is reasonable and that a rebuttable position is generated. Excess benefit transactions as well as excess compensation are areas that the IRS has taken a great interest in recent years. We will provide you with a ?safe harbor? position that can be relied upon and provide peace of mind. If your compensation package is reviewed by an independent consultant and all the facts and circumstances are considered in setting your salary, then you have the benefit of a rebuttable presumption that your compensation package is reasonable. This does not mean that the IRS still cannot say that your compensation is unreasonable, it does mean that they have to prove it. Without the benefit of the presumption, all the IRS has to do is allege that your salary is unreasonable and then you have to pay the taxes, ask for a refund and prove your compensation is reasonable. With the presumption, the IRS has to prove unreasonableness before any assessment is made against you. Our firm will provide you with a review of your compensation plan and an opinion letter setting forth the reasonableness of that plan or a recommendation of action you need to take to make the plan reasonable in order to avoid excess benefit transaction penalties. The cost of the review and opinion letter is $800.00 per employee whose compensation is reviewed. For each employee for whom you need an opinion on compensation you should take the following steps:
FULL-SERVICE CONSULTING Our Firm will provide you with full service compensation consulting including telephone conferences, meetings with Boards or Compensation Committees, on site meetings and consultation, drafting of appropriate corporate resolutions and minutes, etc., at the rate of $150.00 per hour for time spent. Our firm can assist you at all levels of complying with the IRS Safe Harbor regulations from collecting comparability data, providing for independent analysis of compensation arrangements and property transactions, to providing policies for compensation, conflict of interest and excess benefit transaction avoidance as well as generating the proper documentation within the time frames required. You may request additional information by emailing us your contact information to info@lauzoncpas.com. An firm representative will then contact you. |
