@Critter-3 the taxpayer is contending he would pay no taxes on the dividends in the second year - they would probably be qualified dividends and thus taxed at 0% if his income is low enough.
@augh no one can say whether the IRS would agree the first-year salary of $40K is reasonable. the IRS has huge databases that it can look at that would fairly represent your corporation and see the range of salaries taken and their net income. The issue I see, if you can pay yourself a dividend, then you should be able to pay yourself a salary. However, no one can say if the IRS would even give your returns a second glance. Put another way the code does not define reasonable compensation. Rather numerous court decisions have addressed the issue with no consistent results (different tax courts). Your interest would best be served by consulting a tax pro.
