2019 – 03/18 The U.S. Tax Court has held that director fees paid by a company to its president, sole shareholder and sole director were actually wages paid for his day-to-day involvement in running the business. Because the fees were wages, he had no self-employment income and, thus, couldn’t deduct contributions he made to a self-employed Keogh-type pension plan. The court concluded that none of the payments he received were for services performed as a director of the company. They were instead made to him for services he performed as an officer-employee. (TC Memo 2019-17)

Similar Posts