Legal Opinion
Menard, Inc. v. Commissioner
Court of Appeals for the Seventh Circuit
Decided March 10, 2009No. 08-2125PublishedCited by 23 opinions
1Opinion of the Court
POSNER, Circuit Judge.
The Internal Revenue Code allows a business to deduct from its taxable income a “reasonable allowance for salaries or other compensation for personal services actually rendered,” 26 U.S.C. § 162(a)(1), or, as Treas. Reg. § 1.162-7(a) adds, for “payments purely for services.” Occasionally the Internal Revenue Service challenges the deduction of a corporate salary on the ground that it’s really a dividend. A dividend, like salary, is taxable to the recipient, but unlike salary is not deductible from the corporation’s taxable income. So by treating a dividend as salary, a…
2Cases cited14 opinions
- Dee Farmer v. Richard Haas, Edward J. Brennan, and L.E. DuboisCourt of Appeals for the Seventh Circuit · 1993
- Reuben Palmer v. City of ChicagoCourt of Appeals for the Seventh Circuit · 1987
- Elliotts, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1983
- Pepsi--Cola Bottling Company of Salina, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1976
- Lucille Prussner, as of the Estate of Aileen E. Pfeifer v. United StatesCourt of Appeals for the Seventh Circuit · 1990
9 more not listed; retrieve them via the Exa API.
3Cited by23 opinions
- Boyer v. Crown Stock Distribution, Inc.Court of Appeals for the Seventh Circuit · 2009
- Marrs v. Motorola, Inc.Court of Appeals for the Seventh Circuit · 2009
- Abad v. Bayer Corp.Court of Appeals for the Seventh Circuit · 2009
- United States v. Jwuan MorelandCourt of Appeals for the Seventh Circuit · 2012
- United States v. EllefsenCourt of Appeals for the Eighth Circuit · 2011
18 more not listed; retrieve them via the Exa API.