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Irvine Unreasonable Compensation Defense Lawyer

Accused of Dodging Taxes by Receiving Unreasonable Compensation?

A complex tax issue calls for a dedicated attorney who focuses all his professional energies in this area. I am Scott Kauffman, an Irvine, California-based lawyer who does just that — backed by two advanced taxation-related law degrees and over 30 years in practice. Please contact me now if you are being audited or need defense on a specific tax allegation such as the payment of unreasonable compensation.

Some Valid Tax Planning Strategies Raise Flags with the Government

I work with business owners and executives virtually every day, and thus I identify well with the challenges of a tough economy, nurturing a brave venture, and the desire to avoid paying more taxes than one absolutely has to. One strategy especially common in “C” corporations is to liquidate most or all corporate earnings at the end of the tax year by paying executives a large bonus or granting a large salary increase.

If the IRS or a California tax authority challenges your actions, you need a strong lawyer to build a reasonable compensation defense for you. Their side of the argument is that an executive with his or her own business is not entitled to a disproportionate share of money that should be treated — and taxed — as corporate profit. You, or another reasonable person, may see through this argument to their basic goal of collecting “double tax.”

Working together to analyze your business and document its operations, we may be able to build a strong defense against a charge of unreasonable compensation by:

  • Establishing that your contributions and efforts justified the amount of compensation you received — often using comparative market data and other resources
  • Uncovering flaws in the IRS audit or other government investigation

Let’s Talk Business, Taxes, Planning, and Your Defense. Call 949-474-1820.

Whether you are facing potential tax liability, other civil penalties, or even criminal prosecution, I am here to help, beginning with a consultation to learn about your business and understand your circumstances. You can count on me to take on all interactions with tax authorities and other government entities, keeping you informed and aware of decision points but also allowing you to return your focus to running your business profitably.