Did the IRS Really Lose? Lessons from the Davis Case
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Did the IRS Really Lose? Lessons from the Davis Case
- August 1, 2019
- Posted by: RCR Admin Team
- Category: Blog
By Paul S. Hamann & Jack Salewski, CPA, CGMA
The IRS usually wins when it challenges an S Corp.’s Reasonable Compensation in court. Over the years there have been in the neighborhood of 25 to 30 such cases. The IRS has come out on top in all except one: The Davis Case. What made Davis different? What valuable takeaways are there for you and your clients?
The case focused on two concepts that every S Corp. and business advisor should understand:
