Methodology
Deterministic rule scoring
Every report runs 33 discrete factor checks — no LLM-generated figures, no calculator estimates. The methodology is reproducible, auditable, and documented at the primary-authority level.
About
Built for the standard the IRS actually applies.
Reasonable compensation audits are winnable — but only with documentation that matches the standard the IRS and Tax Court actually apply. WageDefender builds that documentation from the inside out: deterministic, court-recognized methodology, grounded in primary authority.
The problem
S-corp officers are regularly hit with $30,000 or more in back-payroll-tax adjustments when the IRS determines their reasonable compensation was understated. The IRS doesn't use a calculator. It uses a multi-factor framework — nine factors in IRS FS-2008-25 alone — and evaluates the officer's documented evidence against each one. Most officers have no documentation at all. That gap is where audits are lost.
The thesis
A deterministic, court-recognized methodology beats a compensation calculator every time. WageDefender doesn't guess. It runs BLS Occupational Employment and Wage Statistics data through four complete factor frameworks, ages every figure forward with the Employment Cost Index, reconciles results across three independent methods, and surfaces every PASS, WARN, and FAIL with the exact primary-authority citation behind it. The output is a defense position — not a number on a screen.
How it's built
WageDefender is independent software — not a tax or accounting practice. Every report is produced by a deterministic engine that applies the same court-recognized factor frameworks the same way every time, with the primary-authority citation behind each result. The software does the documentation; the judgment stays human. Officers who want a licensed CPA to review and sign their report can add Pro-Review, which routes to a credentialed CPA in our review network.
Why it holds up
Four load-bearing properties. Every report carries all four.
Court-recognized
Four framework stress test
IRS Nine (FS-2008-25), LabelGraphics 5, Brewer–Owensby 9, and Watson Independent Investor. The same frameworks cited in Tax Court and appellate decisions.
Refreshable data
BLS OEWS · ECI-aged quarterly
Wages are pulled from BLS Occupational Employment and Wage Statistics, then aged forward using the Employment Cost Index. Reports can be refreshed when BLS releases new data.
Traceable
Every figure cited to source
Each PASS, WARN, and FAIL carries the exact primary-authority citation behind it — IRS FS-2008-25, the LB&I Job Aid, and the BLS OEWS series. Nothing is asserted without a source you can verify.
See it in action
Read a complete sample report before you commit.
The sample shows every section, every factor check, and the three-method reconciliation output — exactly what a real report looks like.
View sample report →