• Reducing the Chance of a Reasonable Compensation Challenge by the IRS
  • May 1, 2003 | Author: Scot Burton
  • Law Firm: Morris, Manning & Martin, LLP - Atlanta Office
  • If your practice is taxable as a "C" corporation, as opposed to a Subchapter S or limited liability company taxed as a partnership, a pervasive tax issue is reasonable compensation. Physician practices that are taxed as C corporations are particularly susceptible to the reasonable compensation for services challenge by the Internal Revenue Service ("IRS") because in most cases, little, if any, earnings are retained annually.