Transcription of Section I: PURPOSE & BACKGROUND
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Section I: PURPOSE & BACKGROUND
Reasonable Compensa tion Job Aid for IRS Val uation Professionals* *(This Job Aid Can Also be Helpful to Revenue Agents and Other IRS Field Personnel) October 29, 2014 Developed by a Team of IRS Valuation Professionals From the Large Business and International Division This Job Aid is current as of the original date of issuance only. This Job Aid is not Official IRS position and was prepared for reference purposes only; it may not be used or cited as authority for setting any legal position. Disclaimer This Job Aid is not an official pronouncement of law, and ca nnot be used, cit ed, or relie d upon as such.
Oct 29, 2014 · excessively high compensation may unduly enrich officers, directors, trustees or key employees of the tax-exempt entity at the expense of the qualified charitable purpose. The Tax Court first considered the "Reasonable Compensation" issue in 1917. Due to the factual nature of the issue, it remains a subject of considerable controversy.
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