- 14 - 3. Answer In the answer, with respect to the quoted language from the petition, respondent admits the first sentence and denies the remainder of the paragraph. D. Petitioner’s Claim With respect to the notice, petitioner makes reference to section 162(a), which, in pertinent part, states: SEC. 162. TRADE OR BUSINESS EXPENSES. (a) In general.--There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including-- (1) a reasonable allowance for salaries or other compensation for personal services actually rendered; Petitioner claims: “The only issue reasonably inferred from the wording of * * * [the notice] is one of reasonable compensation. That is, whether the money paid to the shareholder surgeons as salary was reasonable such that Petitioner’s deductions of these payments was [sic] proper under I.R.C. � 162(a).” Petitioner argues that respondent has raised a new issue because he has changed his theory of the case: “Respondent’s new theory * * * is that Petitioner paid a dividend to the shareholder surgeons equal to the actual collections of the non-shareholder doctors minus the costs and overhead allocable to the non-shareholder doctors.”Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011