Loesch & Green Const. Co. v. Commissioner of Internal Revenue

Petitioner, a corporation, sought to deduct in its tax returns, the amount of salaries paid to its officers during certain calendar years as reasonable compensation disbursed for business expenses. The Commissioner disallowed a substantial amount and determined deficiencies. Thereafter, on review before the Tax Court, an increase in the amount of salaries above that allowed by the Commissioner, but substantially less than the amounts actually paid to the officers, was found to be reasonable compensation, and the differences between the salaries paid and those allowed were determined as…