WageDefender · Audit-defense reasonable compensation

The reasonable-comp report your tax court would write.

S-corp officers overpay IRS penalties on reasonable compensation every year. WageDefender closes the gap with a 14-page, six-section report grounded in BLS OEWS, ECI-aged quarterly, and stress-tested against four court-recognized factor frameworks. Not a calculator. A documented defense position.

BLS OEWS · ECI-aged quarterlyIRS Nine + LabelGraphics 5 + Brewer–Owensby 9 + WatsonThree-method reconciliationEvery figure traceable to source
Live sample · Medical / Dental
Stress Tests 60%
94
Completeness 25%
88
Data Quality 15%
95

Composite of stress-test pass rate, intake completeness, and data-source quality.

Built for

Three ICPs where reasonable compensation gets real money wrong.

Each engagement uses the same court-recognized methodology. The intake adapts to the role mix.

Medical & Dental

Owner-operator practices with mixed clinical and admin hours.

Per-role SOC breakdown across dentist, hygienist supervision, and practice management. Multi-method reconciliation (Cost · Market · Income) so the figure survives compensation audits and Form 1120-S Line 7 scrutiny.

S-Corp owners · $1M–$10M

Operating S-corps with material distributions.

ECI-aged BLS percentiles by industry + MSA. Distribution-to-salary ratio surfaced with the verbatim IRC §162(a)(1) facts-and-circumstances disclaimer. No silent safe-harbor claims.

Real Estate S-Corp

Property managers, syndication sponsors, brokers.

Officer-SOC overrides for brokerage + property management roles. Watson Independent Investor test runs alongside Cost Approach so capital-light, high-revenue practices get a defensible figure.

Methodology

Built like the report a tax court would write — and cite.

Four load-bearing pillars. Every report carries all four. No LLM-generated prose in the numbers — deterministic rule scoring throughout.

Data foundation

BLS OEWS wage data

National median wages by SOC, anchored to the IRS Job Aid for IRS Valuation Professionals. Per-role percentile lookup (p10 / p25 / p50 / p75 / p90) across 30+ officer-relevant SOCs.

May 2025 vintage · refreshed quarterly via ECI series CIU2020000000000I
Time correction

ECI quarterly aging

BLS wage data is aged forward to the report date using the Employment Cost Index — civilian workers, private industry. No stale figures; no silent assumptions.

ECI-aged to each report's date · BLS series CIU2020000000000I
Defensibility

Four-framework stress test

Every report scores against IRS Nine (FS-2008-25), LabelGraphics 5, Brewer–Owensby 9, and Watson Independent Investor. PASS / WARN / FAIL / DATA-NEEDED on each factor with the primary-authority citation.

33 factors · live links to FS-2008-25 and Watson 8th Cir. 2012
Cross-check

Three-method reconciliation

Cost · Market · Income approaches run on the same inputs. ±15% corroboration band is the explicit reviewer signal. When methods agree, the figure is documented as corroborated; when they diverge, the variance is surfaced.

Primary + 2 cross-checks · narrated reconciliation
Sample report

Every report, ready for IRS scrutiny.

A representative WageDefender report cover. Click through to a full sample PDF — no login, no email gate.

WageDefender
Reasonable Compensation Report
Dr. Sarah Chen · Chen Family Dentistry, P.C. · Tax Year 2025
Audit-Readiness Score
Estimated annual Reasonable Compensation (Cost Approach)
$154,954
$154,954
$134,000
$176,000
Indicative range — not a statistical CI
Prepared by WageDefenderPage 1 of 14

What's in every report

01
Cover
Audit-readiness score · RC range · BLS / ECI vintage
02
Defense Summary
Composite score · framework scorecard · provenance
03
Methodology
Approach rationale · IRS Job Aid authority refs
04
Calculation Breakdown
Per-role SOC table · hours · proficiency · subtotals
05
Stress-Test Defense
IRS Nine · LabelGraphics 5 · Brewer-Owensby 9 · Watson
06
Corporate Minutes
Auto-populated UWC ready to print and sign
View the full sample PDF →

Sample uses fictional medical-dental persona. Real engagements use your officer, company, and financial data.

Get pricing updates and sample reports.

Order your report

Two tiers. Same court-recognized methodology.

Both reports run the full four-framework stress test and three-method reconciliation. Choose Pro-Reviewed when you want a credentialed CPA or attorney from the Pro-Reviewed Network to sign the final figure.

Standard

Self-serve report

Full 14-page PDF, deterministic methodology, auto-populated corporate minutes. Delivered in roughly 30 seconds.

  • All four stress-test frameworks
  • Three-method reconciliation
  • Corporate-minutes UWC
  • BLS-current data with ECI aging
See pricing →
Most Defensible
Pro-Reviewed

Reviewed report

Everything in Standard, plus a credentialed CPA or attorney from the Pro-Reviewed Network signs the figure, SOC role mix, and governance factors. Reviewer firm carries its own E&O coverage.

  • Everything in Standard
  • Credentialed CPA/attorney review of figure + role mix
  • Pro-Reviewed Network sign-off page
  • Refresh-eligible when BLS data updates
See pricing →

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WageDefender — Audit-defense reasonable compensation