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Tax StrategyCognis Group

What is an IRS "Reasonable Salary" for a medical professional operating an S-Corp?

Direct answer

The IRS requires S-Corp owners to pay themselves a market-rate salary reflecting actual specialty and geographic benchmarks.

The IRS mandates that S-Corp owners pay themselves a market-rate salary for the services they perform. You cannot set an artificially low salary just to avoid taxes; your salary must reflect actual geographic and specialty benchmarks, which we help you document and substantiate.

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