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Advances to directors and officers

I seek input on the following hypothetical situation. An early stage company has engaged with its founder /CEO ("X") under a consulting agreement for which compensation is accrued but not paid. From time to time the company has advanced money to X over and beyond what would have been required to reimburse any qualified expenses. These advances are made and approved by the board in anticipation of the company raising sufficient funding to pay the accrued compensation to X, and thereby provide the means for X to repay the advances. There is no formal agreement covering this arrangement, no interest is accrued or paid, and the advances continue to accumulate. I believe that such a situation could be tolerated without reporting the advances as compensation provided there was a reasonable expectation of the advances being repaid, with market rate interest within say, a month, or so. Can anyone provide input and source references as to if and when such advances should become income and reportable under Form 1099 or otherwise?

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