Publications

S Corporation ESOPs: Curbing Abuses and Clarifications
03/24/2003

The Internal Revenue Service (IRS) has issued new guidance to resolve technical questions concerning the administartion of employee stock ownership plans (ESOPs) sponsored by Subchapter S corporations (S-corps). In addition, the IRS released an official pronouncement intended to prevent tax practitioners from marketing "grandfathered" S-corp ESOPs to small businesses to take advantage of tax savings associated with ESOPs.