K & K Veterinary Supply, Inc. v. Comr., 2013 T.C. Memo 84

(petitioner was family business corporation operated by family members with over 80 employees that was wholesale distributor of animal health products for large animals, lawn and garden products, farm hardware, pet supplies and products for farm stores and related dealers; family patriarch was sole shareholder and decided compensation for family members and employees; petitioner showed gross profit of $9 million and taxable income of $100,000 with expenses being salaries of family members and property rentals; IRS claimed that compensation was excessive based on comparability factors; on gross profit of $9 million, only $30,000 in dividends paid, and salary of $200,000 paid to patriarch's wife who was vice president , secretary and CFO who worked 30-hour week; court upheld IRS determination that all family members over-compensated and adjusted salaries and deductions accordingly).