A Salary That Is Classified as Unreasonable by the IRS

question 89

True/False

A salary that is classified as unreasonable by the IRS is disallowed as a deduction to the corporation.

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Definitions:

Just Cause Clause

A provision in a contract that restricts an employer's ability to fire employees to situations where there is a legitimate, substantial reason for termination.

Arbitrary Dismissal

Termination of employment without just cause, or in violation of legal or contractual requirements.

Contract Provisions

Specific clauses or terms included in a contract that dictate the obligations, rights, and responsibilities of the parties involved.

Valid

Legally sound, effective, or binding; having a solid, cogent basis in logic or fact.