Explain the tax consequences, to both the corporation and a shareholder-employee, of an IRS determination that a

Question:

Explain the tax consequences, to both the and a shareholder-employee, of an IRS determination that a portion of the compensation paid in a prior tax year is unreasonable. What steps can the and shareholder-employee take to avoid the double taxation usually associated with such a determination?
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...