Compensation recharacterized by the IRS as a dividend because it was considered "unreasonable" will affect only the income tax liability of the corporation paying the compensation.
The recipient will be eligible for a lower tax rate on the dividend and not be subject to payroll tax on the recharacterized amount.

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The Answer of Compensation recharacterized by the IRS as a dividend because it was considered "unreasonable" will affect only the income tax liability of the corporation paying the compensation.
The recipient will be eligible for a lower tax rate on the dividend and not be subject to payroll tax on the recharacterized amount.

Compensation Recharacterized by the IRS as a Dividend Because It