Practical Guidance
Time-saving Solutions
Knowledgeable Insights

Stephen Looney on Johnson, Inc. v. Commissioner and the Reasonableness of Compensation Multi-Factor Test (PDF)

In Johnson, Inc. v. Commissioner, the Tax Court held that the amounts paid to shareholder-employees of a C corporation constituted reasonable compensation deductible under IRC Section 162 and that amounts paid by the taxpayer-corporation to an entity controlled by two of its shareholders was deductible as an ordinary and necessary business expense under IRC Section 162.
PDF
$70.00
Quantity
In Stock
ISBN: 9781422429983
International Order Inquiry

Product details

In Johnson, Inc. v. Commissioner, the Tax Court held that the amounts paid to shareholder-employees of a C corporation constituted reasonable compensation deductible under IRC Section 162 and that amounts paid by the taxpayer-corporation to an entity controlled by two of its shareholders was deductible as an ordinary and necessary business expense under IRC Section 162. The court applied the multi-factor test to determine reasonable compensation.

Stephen R. Looney received his B.A., with honors, in Accounting and Business Administration from Drury College in 1981 and earned his J.D., cum laude, from the University of Missouri-Columbia in 1984, where he was also a member of the Order of the Coif and the Missouri Law Review. He received his Master's in Taxation from the University of Florida in 1985, where he graduated first in his class. He practices in the areas of tax, corporate, partnership, business and health care law, with an emphasis in entity formations, acquisitions, dispositions, redemptions, liquidations and reorganizations. His clients include closely held businesses, with an emphasis in medical and other professional practices. He is a Florida Board Certified Tax Lawyer, and is a member of The Florida Bar Association, the State Bar of Texas and the Missouri Bar Association. Additionally, he has his CPA Certificate, and is a member of the Missouri Society of CPAs. He is a past-chair of the S Corporations Committee of the American Bar Association Tax Section. Additionally, he is on the Board of Advisors and Department Heads for the Business Entities journal where he also serves as one of the editors for the Current Developments column. He is a Fellow of the American College of Tax Counsel and is listed in Best Lawyers in America in Taxation. He writes and speaks extensively on a nationwide basis on a variety of tax subjects. He is the co-author of Tax Planning for S Corporations (Matthew Bender). His articles have appeared in a number of professional publications, including the Journal of Taxation, The Tax Lawyer, the Business Entities Journal, the Journal of S Corporation Taxation, the Journal of Partnership Taxation, and the Journal of Corporate Taxation.

Ask the LexisNexis experts - and get a complete answer based on today's law.

An authoritative analysis of important cases, codes, statutes, rulings, emerging issues or legal topics is available now - through LexisNexis Emerging Issues Analysis. The brain trust of LexisNexis authors - thousands of recognized authorities who develop the respected Matthew Bender®, Mealey's and Martindale-Hubbell® treatises and articles - produce this highly specific content. Each commentary covers an important case, code, statute, ruling or emerging issue such as subprime, nanotechnology, or climate change. More current and concentrated than treatises and more analytical than news, Emerging Issues Analysis bridges the information gap between the two, providing quick expert analysis of current developments in law.

Emerging Issues Analysis PDFs should be purchased individually.

(7471)