Help me with tax question?

Help me with tax question?
Henry Hill was a highly skilled UConn basketball player. Before he signed with the NBA in 2010, he had his attorney set up a separate corporation, Basketball Pros, Inc. Henry signed a contract with Basketball Pros in 2010 and assigned all of his services in professional sports in exchange for a monthly salary. Basketball Pros then signed a multimillion dollar deal with the NBA to license Henry?s services to the Boston Celtics. Henry included his salary from Basketball Pros on his 2010 1040. The IRS has sent a notification of deficiency for 2010 to Mr. Hill stating that the= Entire amount paid to Basketball Pros in 2010 should be included in his taxable income. Henry has retained top tax counsel to represent him, and his attorney has hired your tax consulting firm to research the issue. Is Henry?s approach valid, or is the IRS correct? My question what was Henry's approach and what was the IRS?