Which of the following factors does the IRS consider irrelevant when determining reasonable compensation for a shareholder-employee of an S corporation? Timing and manner of paying bonuses to key people. Dividend history. Consistent amount of compensation year after year. Compensation agreements.
Which of the following factors does the IRS consider irrelevant when determining reasonable compensation for a shareholder-employee of an S corporation? Timing and manner of paying bonuses to key people. Dividend history. Consistent amount of compensation year after year. Compensation agreements.
Chapter22: S Corporations
Section: Chapter Questions
Problem 9BCRQ
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Question
Which of the following factors does the IRS consider irrelevant when determining reasonable compensation for a shareholder-employee of an S corporation?
Timing and manner of paying bonuses to key people.
Dividend history.
Consistent amount of compensation year after year.
Compensation agreements.
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