Corporation owners have attempted to avoid employment taxes by distributing earnings instead of making payments through payroll. Discuss how the IRS has attempted to mitigate this and the issue accountants may face with regards to what is considered reasonable compensation for services.

Corporation owners have attempted to avoid employment taxes by distributing earnings instead of making payments through payroll. Discuss how the IRS has attempted to mitigate this and the issue accountants may face with regards to what is considered reasonable compensation for services.