Once upon a time there were two companies, Hare Industries and Tortoise Enterprises. Both companies were reasonably successful, comfortably profitable, privately owned companies. Seeking ways to share ownership with employees, both company’s owners and managers sought advice from professionals.
Published on May 16, 2011
Deduction for ESOP Distributions Disallowed
The Eighth Circuit reversed a district court and held that a corporation was not entitled to a deduction for cash distribution redemptive dividends paid by the corporation’s employee stock ownership plans to plan participants who left the corporation.
Published on April 01, 2009
Benefiting From Unique Attributes of ESOPs
An employee stock ownership plan (ESOP) is a stock bonus plan or a combination of a stock bonus plan and money purchase pension designed to invest primarily in stock of the employer
Published on May 01, 2012
Tracking Tax Basis in an S Corp. ESOP
...Editor: Frank J. O'Connell, Jr., CPA, Esq. Employee stock ownership plans (ESOPs) currently cover 10 million employees in the U.S. participating in approximately 11,000 plans, according to the ESOP Association. With the number of plans expected to increas
Published on September 01, 2007
Six-Year Statute of Limitation Applies to Assessment
The Tax Court held that the six-year statute of limitation of Sec. 6501(e)(1)(A) applied to an assessment of tax based on a distribution from an ESOP because the taxpayer had not adequately disclosed the distribution on his tax return
Published on September 01, 2014
Current Developments in S Corporations (Part II)
This article covers S corporation operational issues.
Published on November 01, 2007
AICPA News Update - January 11, 2013
In this issue: IRS Delays Start of Tax Season to Jan. 30; AICPA Survey: Most AICPA Members Believe Deficit Reduction Should Be Government’s Top Economic Priority; AICPA and NYSSCPA Release Modifications of Form TC309 for NYC Certiorari Filings; Have You Seen the New Journal of Accountancy Mobile Website?; Free Webinar:
Published on January 11, 2013
Earnout Restriction Causes Substantial Risk of Forfeiture
The Tax Court held that sections of a restricted stock agreement and an employment agreement read together constituted an earnout restriction that might create a substantial risk of forfeiture for stock transferred to an employee.
Published on March 01, 2014
Partners Limited Liability and Self-Employment Tax
The decision in Renkemeyer, Campbell & Weaver, LLP, signals that special allocations not supported by a written partnership agreement and without substantial economic effect will not withstand an IRS challenge and that classification of an interest in a partnership as a limited partner interest should not be predicated simply on
Published on July 01, 2011
Make Room on the Shelf One More Tax Reform Report
Published on September 23, 2010