Amy is the sole shareholder of her corporation Rather than have the corporation pay hera dividend, Amy decides to have the corporation declare a bonus at year end and pay her tax deductible compensation What potential tax issue may arise in this situation Which parties, Amy or the corporation or bo...

Amy is the sole shareholder of her corporation. Rather than have the corporation pay hera dividend, Amy

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Amy is the sole shareholder of her Rather than have the pay hera dividend, Amy decides to have the declare a "bonus" at year-end and pay her tax-deductible compensation. What potential tax issue may arise in this situation? Which parties, Amy or the or both, are affected by the classification of the payment?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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Related Book For answer-question

Taxation Of Individuals And Business Entities 2015

ISBN: 9780077862367

6th Edition

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

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Question Posted: Jan 20, 2017 11:23 AM

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Amy is the sole shareholder of her corporation. Rather than have the corporation pay hera dividend, Amy

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The IRS might argue that a portion of the distribution is really a disguised divid...View the full answer

Taxation Of Individuals And Business Entities 2015

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