In December 2010, an Iowa district court decided Watson, a reasonable compensation case involving an S corporation shareholder-employee.
It is no coincidence that the majority of reasonable compensation cases involve a professional services corporation, such as law, accounting, and consulting firms.
The IRS is taking a formal, quantitative approach towards determining reasonable compensation, so to adequately advise our clients, we must be prepared to do the same thing.
Minister Philip Driscoll received a designated amount of his total reasonable compensation as a housing allowance, which he divided to provide two homes, rather than one, more expensive home.
Rather than rejecting the recharacterization argument out of hand, the Tax Court turned it into a reasonable compensation case and decided that they had not established that the consulting fees represented reasonable compensation.
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Of course, an outgoing chairman is free to negotiate as much as possible and a board, while expected to protect shareholder interests, is equally free to determine a reasonable level of compensation.
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But the demands that they made, very interestingly enough, were very reasonable and they're focused on restoring life in the communities, on security, on reconstruction, on compensation, which I think are all very reasonable expectations.
Does that sort of suggestion that Stuart's made regarding compensation for the beleaguered travellers sound reasonable to you?
It is reasonable to think that you would accept less compensation in order to move more money into the hands of those who need it.
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Base compensation provided the agency with a reasonable profit margin.
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In the public sector, an individual who volunteers to perform services for a public agency is not an employee if the individual receives no compensation or is paid expenses, reasonable benefits or a nominal fee.
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