Case Study: The Warnick Group Defends an IRS Audit with RCReports

The Warnick Group Successfully Defends Client in IRS Audit with RCReports

The Warnick Group, a boutique CPA firm, faced a significant challenge when an S-Corp client with $17 million in revenue was subjected to an IRS audit. The IRS sought to reclassify a large portion of the business's income as wages due to discrepancies in the client's filings, which could have led to massive penalties. To defend their client, The Warnick Group needed to provide a data-driven, defensible reasonable compensation analysis and turned to RCReports for its leading solution.

Using RCReports, The Warnick Group generated a detailed compensation analysis that accurately reflected the owner's role and responsibilities. The resulting report was presented to the IRS, which subsequently approved it, requiring no adjustments to the tax returns and no additional payments from the client. This successful defense saved the client from severe financial repercussions and also provided The Warnick Group with an instant ROI, as they charged a $5,000 fee for the analysis.

The Warnick Group

Rebecca Warnick

The Warnick Group