Steve Looney Speaks at University of Texas 61st Annual Taxation Conference

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.