Multi-million Dollar Compensation Package Reasonable?

That’s what the Tax Court said about an $11+ million year-end bonuses in 2003 and 2004 to 2 brothers who ran a family-owned concrete company. It’s what an independent investor would have paid to outsiders for the jobs they did: supervising 100 employees each on job sites and working 12-hour days, 6 days a week. The corporation, which had revenues of $24 million and $38 million for the years under audit, could deduct the compensation because it was reasonable.