- 117 - that petitioner has shown by clear and convincing evidence was reasonable compensation in 1992 for purposes of section 280G(b)(4).65 (bb) Mr. Richardson Mr. Richardson’s 1992 compensation, excluding the Retention Payment and disputed 1991 SRP Benefit, was $353,346. Because reasonable compensation for Mr. Richardson in 1992 exceeded his 1992 compensation (exclusive of the Retention Payment and disputed 1991 SRP Benefit) by $406,014, this excess constitutes the amount of Mr. Richardson’s Retention Payment and disputed 1991 SRP Benefit that petitioner has shown by clear and convincing evidence was reasonable compensation in 1992 for purposes of section 280G(b)(4). 65 Respondent also argues that Mr. Garrett’s Retention Payment (but not his 1991 SRP Benefit) cannot be reasonable compensation for services because it is a severance payment within the meaning of Q&A-44 of sec. 1.280G-1, Proposed Income Tax Regs., 54 Fed. Reg. 19407 (May 5, 1989). We need not address this contention, however, because the disputed 1991 SRP Benefit received by Mr. Garrett, which respondent concedes is not a severance payment, equaled $239,712. We conclude above that petitioner has established that $167,467 of the (combined) Retention Payment and 1991 SRP Benefit paid to Mr. Garrett in 1992 constituted reasonable compensation. Amounts above this figure are not reasonable compensation for 1992 services. Accordingly, $167,467 of the $239,712 1991 SRP Benefit is reasonable compensation, but the remainder of the 1991 SRP Benefit and all of the Retention Payment is not. Because Mr. Garrett’s Retention Payment would not in any event constitute reasonable compensation, we need not decide whether it is also not reasonable compensation because it is a severance payment.Page: Previous 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 Next
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