McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 37

When considering C corporations, the IRS checks to see whether salaries paid are too large.In S corporations, however, it usually must verify that salaries are large enough.Account for this difference.