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For enrolled agents handling S-Corps

Pick up a client. Import the 7203. Start working.

Representation work needs basis and 7203 to be airtight. Upload the prior-year PDF, the cascade seeds, and the methodology trail is attached to every report you generate from there on.

app.saferatio.com/advisor/clients/cypress/basis/import-7203
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Cypress Logistics Basis Import 7203

Henry Marsh · TY 2025 onboarding

henry-marsh-7203-2024.pdf

138 KB · Parsed in 1.4s

Parsed → ledger entries

L1 · Opening basis $96,400
L3a · Ordinary income $78,200
L6 · Distributions $140,000
Seeds TY 2025 opening $34,600

7203 import

~1.4s

Prior-year PDF parsed and validated to ledger entries

Cascade reconciles

$0.00

§1366/§1367 arithmetic balanced per shareholder per year

RC approaches

3

Cost, income, and market — blended with confidence score

Report deliverable

24 pp

Audit-ready PDF with full methodology trail attached

New representation engagement

Onboarding a new client without re-entering history.

Lines 1, 3a, 3k, 6, 8a, and 11 of the prior-year Form 7203 map directly into the cascade. Form 7203 sub-total identities are validated before any ledger entry is written. Line 15 seeds the next year's opening basis automatically — the new client is productive from the first session.

  • IRS template plus the major tax-software output shapes
  • Math-validated parser — values only land if sub-totals close
  • Idempotent — refuses to overwrite an existing ledger silently
Import Form 7203
Henry Marsh · TY 2024

henry-marsh-7203-2024.pdf

138 KB · Parsed in 1.4s

Sub-totals validated

Parsed → ledger entries

Line 1 · Opening basis $96,400
Line 3a · Ordinary income $78,200
Line 6 · Distributions $140,000
Line 15 · Ending basis $34,600
Seeds TY 2025 opening $34,600

What you work in

Three surfaces, one connected model.

Tracking

Henry Marsh

Opening$34,600
+ K-1 income$82,400
− Distributions$95,000
Ending basis$22,000

Shareholder basis tracking

§1366/§1367 ordered per shareholder.

Modeling

Conservative

Salary 80K

$42K

Base

Salary 65K

$22K

Aggressive

Salary 50K

−$6K

Scenario compare

Three cascades, one view.

Reasonable comp

Recommended

$72,600

Cost

$68K

Income

$76K

Market

$73K

87% confidence · 24-page PDF

RC analysis

IRC §162 · BLS OEWS · audit-ready.

Year-end planning

The binding constraint, identified automatically.

Save Conservative, Base, and Aggressive scenarios. Cascade reconciles per column. The workspace flags which scenario would trigger an excess distribution — before the client is surprised in April.

Conservative

$80K salary

Opening$34.6K
+ K-1$67.4K
− Dist.$60K
Ending$42K
Headroom $42K

Base

$65K salary

Opening$34.6K
+ K-1$82.4K
− Dist.$95K
Ending$22K
Binding constraint

Aggressive

$50K salary

Opening$34.6K
+ K-1$97.4K
− Dist.$138K
Ending−$6K
Excess distribution

Snapshot the recommended scenario at year-end. The next year's opening basis seeds from line 15 automatically.

Reasonable-comp analysis
87% confidence

Recommended salary

$72,600

Blended across 3 IRS-recognized approaches

$52K (p25) $92K (p75)

↑ Recommended

Cost

$68K

Many Hats

Income

$76K

Investor

Market

$73K

BLS OEWS

Reasonable compensation

Three IRS-recognized approaches, blended.

Cost (Many Hats), income (Independent Investor), and market analysis run on the same shareholder. Confidence score reflects how well the approaches agree. Output is a 24-page audit-ready PDF with the full methodology trail attached — defensible if the engagement turns into representation later.

IRC §162-aligned BLS OEWS-backed 800+ SOC codes

The deliverable

A 24-page report for the file.

Methodology, BLS OEWS data sources, role allocation, IRC §162 references, defensibility rationale. Audit documentation per shareholder, per year, on demand.

Download the sample
Sample SafeRatio reasonable compensation report
Page 1 of 24
For enrolled agents handling S-Corps

One workspace for every S-Corp engagement.

Bring a new client in by uploading last year's Form 7203 — the cascade seeds and you start working.

Exhibitor at NAEA Tax Summit 2026 · SafeRatio is an independent software platform and is not affiliated with NAEA.