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There is one other important thing I have learned from this. Be careful of the webinars you register for or attend. The NAEA offers a lot and some are very good. On more than one occasion, I have noticed the webinar was put together to sell a product. Just give you enough information in an attempt to get you hooked. I didn't need the CE for this as I have gone well past the minimum requirements for this year. My curiosity got me as reasonable compensation is a good topic and something we all face. This webinar was two hours long, good court case information, the supposed horror story I mentioned, and at the end there it is, buy our software to calculate reasonable compensation. I don't know about anyone else, but I do not want my inbox to be plugged up every day with marketing messages that takes some time to delete.

I'll be happy to read responses. My church was incorporated in 1867 and obtained an EIN many decades ago for employee purposes - before one had to file for TE status. From time to time we are asked to provide our TE determination letter. I have looked into the work to actually get it but it is so expensive so we decline. At least we can point to our state charter as a religious institution so not for profit. It's a bit annoying when there are apparently no means to acknowledge 'pre-existing' conditions when laws change.

just filed four 1099s for tax year 2023 at efilemyforms.com.. I figured it out and it went pretty smooth.. I tried to sign up at the irs site to efile from there but could never get registered so I went this route as the new efile mandate is in force.

@Terry D EA Thanks for this conversation. @DANRVAN I do enjoy reading your analysis of an issue. It reminds me of something I know but sometimes don't follow - Always start with the code, then move to the regs and then to lesser authority. I really enjoyed reading this as it unfolded. Tom Longview, TX

This is a great discussion. I am thinking more and more the presenter in the webinar made the story up. No court case, never mentioned "understatement of taxes" and now I am inundated with advertisements to buy their reasonable compensation software with a $400.00 price tag. A scare tactic maybe to get people to jump on the software??? To calculate a reasonable wage is not brain surgery. It seems that most of the court cases reviewed the shareholder was indeed providing services and taking a very low salary presenting a large gap between what it should have been and what they were doing. The presenter never even mentioned taking distributions without sufficient basis. Maybe this should be mentioned to the NAEA as they were the one providing the webinar.

Sound like the guy Terry mentioned in his OP specialized in those.