Disallowed Payments definition
Disallowed Payments. Any payments made to an officer of the corporation such as a salary, commission, bonus, interest, or rent, or entertainment expenses incurred by him, which shall be disallowed in whole or in part as a deductible expense by the Internal Revenue Service, shall be reimbursed by such officer to the corporation to the full extent of such disallowance. It shall be the duty of the directors, as a board, to enforce payment of each such amount disallowed.
Examples of Disallowed Payments in a sentence
Disallowed Payments No payment will be allowed under the following circumstances: The Interpreter is an employee of the Requester.