Tax Memorandum

MEMORANDUM TO: Mr. Kim FROM: Your name DATE: December 6, 2009 RE: task Memo #2-Executive Compensation recognise # 1 1.If KimTech would be audited by the IRS for 2007, Mr. Kim would sine qua non to know will his payment be deemed median(a) and what the corporation would need to show that his earnings is average. 2.In Elliots case, the court say that relevant considerations include the perspective held by the employee, duties performed, and hours worked as well(p) as the general wideness of the employee to the achievement of the fraternity leave signifi give the sackt insights into the judiciousness of the remuneration scheme. Comparison of the employees recompense with those paid by exchangeable companies for similar services, companys size as predictd by sales, net income or peachy value, and whether some relationship exists between the taxpaying company and its employee argon taken into account for reasonable determination. Also, assure of internal dissimilitude in a companys treatment of payments to employee may indicate that the payments to employees may indicate that the payments go beyond reasonable allowance. 3.Based on the Elliots case, Kim compensation is deemed reasonable because he is the sole shareholders and plays a major situation in the company. The company has a turn out track of success with her being the chairman and sole shareholder. Kim can provide the evidence that in recent years KimTechs value hass been appreciating at 7% per year. Issue # 2 1. Kim would like KimTechs compensation to be tested using the free-lance investor/return on right approach to evaluate the reasonableness of the corporations compensation. 2.In Elliots case, A relevant inquiry is whether an inactive, main(a) investor would be unbidden to compensate the employee as Elliot was compensated. The nature and prize of the services should be considered, as well as the kernel of those services on the return the investor is seeing on his ! investment....If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper