Atlantic Executive Consulting Group, LLC provides specialized consulting services and expert testimony involving executive compensation, business valuations and information technology. This web page is devoted to one of our specialties: analyses, opinion letters and expert testimony addressing reasonable versus unreasonable executive compensation.
Atlantic’s client base includes professional service firms, closely-held businesses, and tax-exempt organizations across the United States. For more information about Atlantic’s other services, please visit www.AECG.biz.
We Determine Reasonable Compensation Amounts for Executives, Directors, Managers and Trustees
The topic of reasonable compensation versus unreasonable compensation is one of the hottest issues in American business today. The Securities and Exchange Commission is requiring more disclosure of executive compensation details at publicly-traded corporations. Shareholders are protesting some CEO compensation packages. Internal Revenue Service and state auditors are looking for over-compensated shareholders at closely-held C corporations and under-compensated shareholders at S corporations. The IRS announced they had imposed $21 million in excise taxes on forty officers and board members at charitable organizations due to “excess benefit transactions” in the form of unreasonable compensation. High-profile class action lawsuits have been filed against large employers who may have permitted investment managers to receive unreasonable compensation for services they provided to retirement plans. Also, an accounting rule known as FIN 48 requires that financial statements include a provision for potential tax liabilities which could arise due to uncertain tax positions taken by the company, such as the payment of potentially unreasonable compensation.
Challenges to "reasonable" compensation are among the most common, and most complex, issues raised in IRS audits of closely-held businesses and tax-exempt organizations.
Tracey Green, Esq.
Willoughby & Hoefer, P.A.
Columbia, South Carolina
"I retained Stephen to assist me in a tax controversy involving the appropriate level of executive compensation. I believe he was instrumental in supporting and obtaining a very favorable result for the client. I wholeheartedly recommend Stephen."
Morris Cregger, CEO
Cregger Company, Inc.
Columbia, South Carolina
"Stephen Kirkland was our consultant during an IRS audit of our company. The dispute regarded my compensation which the IRS deemed to be excessive. Stephen’s professionalism, understanding of the IRS mode of operations, along with his highly-effective presentation resulted in a 100% victory. I would highly recommend him in this capacity as he is a skilled negotiator."
Denise Savage, Esq.
Savage & Associates, P.C.
Croton on Hudson, New York
"Stephen Kirkland provided superlative and painstaking expert analysis in connection with prosecution by my firm to recover a purported fraudulent transfer made by a company to its President and CEO. Atlantic Executive's analysis of applicable data and other expert materials they prepared for the litigation proved to be indispensable in the litigation. Stephen’s expertise was pivotal in connection with reaching a favorable settlement."
Brian M. Blacher, Tax Director
Siemens Power Generation, Inc.
Orlando, Florida
"Stephen, I wanted to follow up and thank you again for your efforts in support of our audit activities. We resolved the audit favorably on the officer compensation issue. The IRS agreed to drop their disallowance of the officer compensation deduction. Thank you again for your efforts in supporting our successful defense."
Ronald Oddo, CHBC, EA, CFP™, CDFA™, AAMS® CTRS CAS®
The PM Group-Arizona, Ltd.
Scottsdale, Arizona
"Even if you are a seasoned tax veteran, with credentials and licenses in abundance, you simply can’t know it all when it comes to tax resolution services. Unless you have logged 40 or 50 compensation cases with the IRS, I strongly recommend that you seek an experienced professional to guide you through the rough terrain you will undoubtedly experience during the process.
Stephen Kirkland is the professional I chose after interviewing attorneys, CPAs, and other consultants. The case that he exemplified his talents in was a large construction company (that was a C-corporation), two family partnerships, and the owner’s personal income tax return for 2007. The issues were potentially unreasonable compensation (in excess of $1,800,000) and undocumented shareholder loans (in excess of $1,300,000). The final outcome for the Client was much better than we expected based on these facts. With Stephen’s guidance, and learned case management techniques, we were able to work with the IRS without the usual relationship discomfort. The final outcome was a very small assessment for an agreed-upon corporate dividend to the Shareholder that would have otherwise been taxed at the 35% rate. My client was very pleased.
Stephen is a true compensation expert who also understands the complex tax issues. He responded to every request promptly."
Erik P. Doerring, Esq.
McNair Law Firm, P.A.
Columbia, South Carolina
"Stephen Kirkland is a knowledgeable expert in the area of reasonable compensation with practical courtroom experience. We are fortunate to have someone like Stephen in South Carolina with a national focus and following in this area."
The topic of reasonable compensation versus unreasonable compensation is one of the hottest issues in American business today. The Securities and Exchange Commission is requiring more disclosure of executive compensation details at publicly-traded corporations. Shareholders are protesting some CEO compensation packages. Internal Revenue Service and state auditors are looking for over-compensated shareholders at closely-held C corporations and under-compensated shareholders at S corporations. The IRS announced they had imposed $21 million in excise taxes on forty officers and board members at charitable organizations due to “excess benefit transactions” in the form of unreasonable compensation. High-profile class action lawsuits have been filed against large employers who may have permitted investment managers to receive unreasonable compensation for services they provided to retirement plans. Also, an accounting rule known as FIN 48 requires that financial statements include a provision for potential tax liabilities which could arise due to uncertain tax positions taken by the company, such as the payment of potentially unreasonable compensation.
