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Unreasonable Management Fees Paid to Corporation Shareholders Controlled Not Deductible (Wycoff, TCM)

The sole shareholders of two operating S corporations could not deduct unreasonable management fees the corporations paid to a third S corporation that the shareholders controlled. The fees depleted most, if not all, of the operating corporations’ profits. In addition, as much as 87 percent of the fees were used to pay current and deferred compensation […]

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