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Executive Compensation in IRS Crosshairs Audio CD

Recorded May 12, 2005

Faculty: Dan Mulholland & Henry Casale

There's a target painted on your back, and the IRS has declared it open season on your pay package!

Did your hospital receive a letter from the IRS asking for information about executive and physician compensation practices? If you did, you're in good company. The IRS contacted nearly 2,000 charities and foundations to seek more information about their compensation practices and procedures. If not, don't think you're off the hook.

The Senate Finance Committee and House Ways and Means Committee has held hearings about whether the rules governing charitable exempt organizations should be tightened up, in part due to testimony by IRS officials and state attorneys general about perceived abuses and allegedly lavish perks enjoyed by some. New legislation could be forthcoming as a result.

At the same time, the IRS has issued fairly comprehensive informal guidance about how fringe benefits are to be handled, which will have a direct effect on how things like travel and entertainment expenses will be treated from an intermediate sanctions perspective.

It seems like every time you turn around, a new challenge presents itself in this very important and highly complex arena.

Topics discussed include:

  • The IRS Executive Compensation Review Initiative: What are they looking for and where are they going?
  • What you need to have in your Executive Compensation Policy (a sample policy will be provided with purchase)
  • How to create a rebuttable presumption that your compensation is reasonable
  • Who should be on the Board Compensation Committee and how independent do they really have to be?
  • Avoiding the trap of "automatic excess benefits" in executive fringes and board perks
  • Reporting executive compensation on your 990 return
  • Memorializing compensation and benefits in your employment contract (a model CEO contract will be provided with purchase)
  • What's Congress cooking up now?
  • Tax-exempt physician corporations in IRS crosshairs

Audio CD: $225

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