"Forma.ai's product vision has the most potential of any in the SPM space" - Forrester
Read Forrester's report >>

Unreasonable Compensation

A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z

A potential tax issue in privately held or closely held companies is executive compensation.

The Internal Revenue Service (IRS) may challenge executive compensation in such organizations as excessive or unreasonable and as a distribution of corporate profits rather than salary (IRS Sec.162).

If the IRS is sustained, the payment is a dividend and subject to double taxation as corporate income and as individual income