12-Month Rule & IRC §267(f) for MSOs | Guardian Tax
Applying the 12-Month Rule and IRC §267(f) to Management Service Organizations (MSOs) Introduction: Timing Rules and Controlled Groups In the world of tax planning for healthcare and professional services, management service organizations (MSOs) often operate within controlled group structures. Timing the deduction of prepaid service income can make a substantial difference in a company’s tax […]
Clarifying MSO Compensation: Reasonable Pay vs. Management Fees
MSO Compensation: Reasonable Pay vs. Management Fees MSO Compensation: Reasonable Pay vs. Management Fees Learn how to structure Management Services Organization (MSO) compensation to optimize tax efficiency, ensure compliance, and protect business assets. What Is an MSO? A Management Services Organization (MSO) provides administrative, operational, and financial services to businesses, particularly in the healthcare sector. […]
Prepare for IRS Audits: MSOs and Reasonable Compensation Studies
What is Reasonable Compensation? A reasonable compensation study is an analysis conducted to determine an appropriate salary for a shareholder-employee, ensuring it aligns with IRS guidelines and industry standards. The IRS defines reasonable compensation as “the value that would ordinarily be paid for like services by like enterprises under like circumstances.” This analysis is crucial […]