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 + Mayson Nine-Factor + 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 the BLS Employment Cost Index
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 Employment Cost Index (civilian, private industry)
Defensibility

Four-framework stress test

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

29 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
Documentation-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
Documentation-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 · Mayson Nine-Factor · 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