CPA Explains | How I Saved a Client $80,000 in Taxes with This ONE IRS Formula cover art

CPA Explains | How I Saved a Client $80,000 in Taxes with This ONE IRS Formula

CPA Explains | How I Saved a Client $80,000 in Taxes with This ONE IRS Formula

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 What if I told you the wrong S-Corp reasonable compensation could cost you over $20,000 in IRS penalties—and that one small business owner avoided an $80,000 tax bill with the right strategy? In this video, I’ll expose the IRS-approved methods to calculate your salary the right way and protect your business from audits.Too many entrepreneurs, LLC and S-Corp owners are guessing their wages using outdated “50/50” or “60/40” rules—and losing tens of thousands of dollars to unnecessary payroll taxes or facing devastating IRS audits. Don’t let bad advice drain your profits.I’ll break down:✅ The 3 IRS-approved methods for calculating reasonable compensation (Market, Income, and Cost / “Many Hats” Approach)✅ A real client case study where we saved over $80,000 in taxes✅ The biggest IRS red flags that trigger audits for small business owners✅ How to document your salary so it’s audit-proof and tax-efficientWhether you’re a self-employed business owner, entrepreneur, doctor, consultant, or S-Corp shareholder, understanding reasonable compensation is critical to reducing taxes and keeping more of what you earn.📌 FREE RESOURCE: Download my one-page guide on calculating an IRS-proof S-Corp salary →https://stephenleecpa.com/resource/irs-proof-reasonable-compensation/📌 NEXT STEP: Apply for my 5-session Business Owner Bootcamp starting this October to create your personalized strategic tax plan, including quarterly tax planning, deductions, and reasonable compensation →https://stephenleecpa.com/business-owner-bootcamp/Timestamps:00:00Introduction: The High Stakes of S-Corp Salaries01:06The Risks of Incorrect Compensation01:36Bootcamp Announcement01:54Case Study: Saving $80,00003:33Debunking Common Myths04:28The Many Hats Formula05:29Red Flags and Documentation06:08Conclusion and Next StepsAbout This Channel:I’m Stephen Lee, CPA, CPWA®, and I help high-income professionals and small business owners reduce taxes, grow wealth, and protect their money. Subscribe for weekly videos on:💰 Tax strategies for entrepreneurs & business owners📊 S-Corp, LLC, and 1099 tax planning📈 Retirement planning and wealth-building tips⚖️ Audit-proof strategies that keep more cash in your pocket#SCorp#Taxes#SmallBusiness#Entrepreneur#TaxSavings#ReasonableCompensation#IRS#BusinessOwner🔔 Subscribe for more tips and strategies tailored for business owners and high earning professionals.On this channel, Stephen Lee shares proven strategies to help high earners, business owners, and professionals keep more of what they make, minimize taxes, and build lasting wealth.Whether you’re optimizing your S-Corp, investing smarter, or managing 1099 income, this channel gives you the tools to make confident money moves — backed by real client experience.Subscribe for smart, actionable advice — and take control of your financial future.The information provided on this channel is for general information and entertainment purposes only. It is not intended to serve as legal, financial, or tax advice. You should not act or refrain from acting on the basis of any content included on this channel without seeking appropriate legal, tax, or other professional advice specific to your individual circumstances. The use or reliance on any information contained on this channel is solely at your own risk.
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