When the IRS classifies a portion of a salary payment to a shareholder/employee as a constructive dividend,

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When the IRS classifies a portion of a salary payment to a shareholder/employee as a constructive dividend, which party (corporation or shareholder) bears the economic burden of the tax consequences?

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Principles Of Taxation For Business And Investment Planning 2016 Edition

ISBN: 9781259549250

19th Edition

Authors: Sally Jones, Shelley Rhoades Catanach

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Question Posted: Nov 03, 2015 05:29 AM

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When the IRS classifies a portion of a salary payment to a shareholder/employee as a constructive dividend,

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The direct tax burden of the classification is on the corporation that loses a ...View the full answer

Principles Of Taxation For Business And Investment Planning 2016 Edition

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