Court Accepts Analogy of Outside Board Chair for Reasonable Compensation Case

Business Valuation UpdateVol. 9 No. 12
Legal and Court Case Update
December 2003

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4212 Local Trucking Without Storage
562119 Other Waste Collection
federal taxation
reasonable compensation, income tax
E.J. Harrison and Sons, Inc. v. Commissioner
T.C. Memo 2003-239, 2003 Tax Ct. Memo LEXIS 239
August 13, 2003
US
Federal Court
United States Tax Court
David Ostrove, CPA, JD (for taxpayer) <br> James F. Carey (for IRS)
Halpern

Summary

The issue in this case was whether the company could deduct amounts paid to an officer-shareholder as reasonable compensation during the tax years at issue.

See Also

E.J. Harrison and Sons, Inc. v. Commissioner

Full Text of Court Cases
August 13, 2003

Issue is whether compensation paid to taxpayer's officer was reasonable compensation that was therefore deductible.