Tax
Dean Mead’s Tax Department handles tax planning issues for businesses and individuals. The attorneys in our department have extensive experience in a full range of…
Dean Mead’s Tax Department handles tax planning issues for businesses and individuals. The attorneys in our department have extensive experience in a full range of…
The Dean Mead Government Relations & Lobbying practice is built on three principles: Deep knowledge of how laws, regulations and policy can effect business outcomes;…
Dean Mead attorney Stephen Looney was a featured speaker at the University of Texas 61st Annual Taxation Conference held in Austin, Texas on December 5th, 2013. Mr. Looney’s presentation was entitled “Compensation Reclassification Risks for S and C Corporations.” The presentation discussed how the IRS and the Courts are addressing the reclassification of compensation and other payments to shareholders as dividends (unreasonably high compensation) in the context of C corporations, as well as how the IRS and the Courts are addressing the reclassification of distributions as compensation (unreasonably low compensation) subject to payroll tax liability in the context of S corporations. It also focused on the increasing application by the IRS and Courts of the so-called “independent investor test” to determine reasonable compensation, as well as the ability to use S corporations to minimize payroll taxes as well as the new 3.8% tax imposed on Net Investment Income.