Posts Tagged ‘162(a)’

Assessing the ‘Reasonableness’ of Executive Compensation in Closely Held Corporations


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Published in the New York Law Journal April 23, 2009 by David E. Kahen and Elliot Pisem

Every tax advisor to closely held corporations is confronted from time to time with the question of whether compensation paid to the chief executive or other senior officer of a closely held corporation will be fully deductible under Internal Revenue Code section 162(a), which permits a deduction for ordinary and necessary expenses paid or incurred in carrying on a business, including “a reasonable allowance for salaries or other compensation for personal services actually rendered”.

Link to full article.

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