Charlie, who is in the 39 6 percent marginal tax bracket, is the president and sole owner of Charlie Corporation (a C corporation in the 34 percent tax bracket) His current salary is $700,000 per year What are the income and PICA tax consequences if the IRS determines that $200,000 of his salary is...

There will be an overall increase in taxes of 29786 200000 will not be deductible by Charlie Corpor ...

Charlie, who is in the 39-6 percent marginal tax bracket, is the president and sole owner of

Question:

Charlie, who is in the 39-6 percent marginal tax bracket, is the president and sole owner of Charlie (a C in the 34 percent tax bracket). His current salary is $700,000 per year. What are the income and PICA tax consequences if the IRS determines that $200,000 of his salary is unreasonable compensation?
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...