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Congratulations!
You have completed ERI DLC Course 12: IRS Reasonable Executive Compensation.
You should now be able to:
- Recognize how using deductible pay as a business expense can result in an IRS reasonable compensation determination
- Identify the IRS tests for reasonable compensation according to IRC 162(a)
- Define the concept of competitive norms
- Recognize factors that the courts have used to determine reasonable pay
- Specify how different legal business structures impact taxes levied on executive compensation packages
- Recognize the causes of compensation variance and the arguments that may be made for compensation that at first glance may not meet the tests of reasonableness
- Identify the company and personal federal income tax deductions that may be taken for stockholder-employee benefits and fringe benefits
- Recognize what a constructive distribution is, and the potential penalties associated with it
If you need to report completion of this course to a supervisor or instructor, you may send them a screen shot of your training history.
If you would like to recommend this course and the DLC to a colleague or friend, send an email.
Looking to Benchmark Pay?
See our salary, cost-of-living, and executive compensation data in action.