© 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…
Read more
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…
Read more
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.…
Read more
Paying for Personal Guaranties of Company Debts
By Stephen D. Kirkland, CPA, CMC, CFF Originally published in The Tax Adviser, September 2022. Copyright: AICPA. EXPENSES & DEDUCTIONS It is common for business owners to personally guarantee company debts. This is a valuable service since many private companies could not otherwise obtain financing in the current lending market. Indeed, business owners already face…
Read more
Recent Comments