Charlie, who is in the 35 percent marginal tax bracket, is the president and sole owner of

Question:

Charlie, who is in the 35 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 FICA tax consequences if the IRS determines that $200,000 of his salary is unreasonable compensation?

AppendixLO1

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Taxation For Decision Makers 2008

ISBN: 9780324654110

2nd Edition

Authors: Shirley Dennis-Escoffier, Karen A. Fortin

Question Posted: