- 19 -
qualifications; (b) the nature, extent, and scope of the
employee's work; (c) the size and complexities of the employer's
business; (d) a comparison of salaries paid with the employer's
gross and net income; (e) the prevailing general economic
conditions; (f) a comparison of salaries with distributions to
Officers and retained earnings; (g) the prevailing rates of
compensation for comparable positions in comparable concerns;
(h) the salary policy of the employer as to all employees;
(i) the amount of compensation paid to the particular employee in
previous years; (j) the employer's financial condition;
(k) whether the employer and employee dealt at arm's length;
(l) whether the employee guaranteed the employer's debt;
(m) whether the employer offered a pension plan or profit-sharing
plan to its employees; and (n) whether the employee was
reimbursed by the employer for business expenses that the
employee paid personally. See Rutter v. Commissioner, 853 F.2d
1267, 1274 (5th Cir. 1988), affg. T.C. Memo. 1986-407; Elliotts,
Inc. v. Commissioner, supra at 1245-1248; Kennedy v.
Commissioner, 671 F.2d 167, 174 (6th Cir. 1982), revg. and
remanding 72 T.C. 793 (1979); Charles Schneider & Co. v.
Commissioner, supra at 151-152; Mayson Manufacturing Co. v.
Commissioner, supra at 119; Estate of Wallace v. Commissioner,
supra at 553; Home Interiors & Gifts, Inc. v. Commissioner,
73 T.C. 1142, 1155-1156 (1980); see also Mad Auto Wrecking, Inc.
Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NextLast modified: May 25, 2011