© 2013 American Institute of CPAs - All Rights Reserved. Reprinted with permission from the September 2013 issue of Journal of Accountancy. ► IRS scrutiny of excessive executive compensation is increasing, affecting many types of taxpayers. CPAs need to advise their clients on steps they can take to lessen their exposure in this area. By…
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Planning for Golden Parachute Payments
A Primer on the Tax Law Issues By Stephen D. Kirkland, CPA, CMC, CFF Originally published by NACVA in QuickRead on July 6, 2023 Years ago, “golden parachute” payments were fully tax deductible by the employer if they were “ordinary and necessary” business expenses under Internal Revenue Code § 162. However, due to controversy over…
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Fixed Payments May Avoid Unreasonable Compensation at Nonprofits
By Stephen D. Kirkland, CPA, CMC, CFF Originally published in QuickRead on May 4, 2022. Internal Revenue Code § 4958 imposes excise taxes on the excessive portion of compensation paid by a non-profit organization. Excise taxes must be paid by “disqualified persons” who receive unreasonable compensation as well as by the individuals who approve it.…
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Ways to Improve Your Partner Compensation Plan
By Stephen D. Kirkland, CPA, CMC, CFF Originally published in The Value Examiner (January/February 2017) which is a publication of the National Association of Certified Valuators and Analysts. One key difference between successful and unsuccessful financial service firms is the way that partner compensation amounts are determined. Successful firms have strong compensation plans that help…
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