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Subject:
Item Title: Know the Ins and Outs of 'Reasonable Compensation'
Summary:
The IRS sometimes challenges the compensation of corporate shareholder-employees and decides the amounts are too high or too low. If auditors determine your salary is unreasonable, you company could be hit with back taxes and penalties. Here are two cases of taxpayers who contested IRS salary determinations in court, along with some ways to justify a reasonable salary.
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