Reasonable comp for solo doctors hits a different bar.
A physician-specific reasonable comp self-audit. Built around the Watson framework, BLS specialty benchmarks, and the questions an IRS auditor actually asks.
What's inside
- Why solo physician S-corps are scrutinized at a higher rate than generic owner-ops
- The Watson framework reframed for medical practices (salary, distributions, comp memo)
- How BLS specialty salary medians anchor a defensible W-2 number
- The 7-question self-audit and the green-yellow-orange-red bands
- The five questions an IRS reasonable comp auditor opens with
- Three concrete moves: corrective payroll, memo, basis schedule
Send me the audit.
The Watson framework still applies. Specialty math changes the number.
Solo physician S-corps sit in an audit category the IRS knows well. The owner is highly compensated in the open market, the specialty has a defensible BLS median, and a low W-2 against high distributions is a pattern auditors flag fast. The Watson v. United States framework is the legal backstop. Specialty benchmarks are how the audit actually proceeds.
This self-audit is built for solo MDs, DOs, dentists, and 2-3 person practices on the S-corp election. It uses the same 7-question Watson-style scoring as the generic version, then layers in physician-specific benchmarks and audit questions. The point is to spot exposure before the IRS notices it.
No client-identifying detail is used in the audit. It is general information for owners considering whether their comp structure can defend itself. Specific situations always require a CPA who has seen the books.
General information for physician and dental S-corp owners. Not tax advice for your specific facts. Alex Sears CPA LLC is a Texas-licensed CPA firm.