Double Taxation – The Burns Firm – Advisors of Complex Financial Matters

Shareholders Compensation vs Dividends: An Important Distinction for C Corporations

July 3rd, 2025|Categories: Accountant, Burns Firm, C Corporation, CPA, CPA Dallas, CPA near me, CPA Texas, Dallas CPA, Double Taxation, Owner Compensation, Owner Compensation vs Dividends, Reasonable Compensation, Tax, tax accountant near me, Tax Advisor, TCJA, Texas CPA, The Burns Firm|Tags: C Corporations, Compensation vs Dividends, CPA, cpa near me, Dallas CPA, double taxation, Owner's Compensation, Reasonable Compensation, tax, tax advisor, Texas CPA, The Burns Firm|

The IRS and closely held C corporations often disagree about the reasonableness of compensation paid to shareholder-employees. The company wants to classify payments to shareholder-employees as deductible compensation expense. [...]