The IRS, with an affirmative ruling from the Tax Court, has disallowed an S corporation's deduction of the unpaid portion of the payroll expenses for employees who participated in the S corporation's employee stock ownership plan (ESOP). The IRS disallowed the deduction under IRC Sec. 267(b), saying that due to the ownership interest of the employees in the S corporation, they were related parties. The unpaid portion of payroll expenses would be deductible in subsequent years, once payment was made.
For more information contact your local UHY LLP professional.
You're Invited! Not-For-Profit CFOShare
Tuesday December 10, 2019
4:00 PM - 6:00 PM
You're Invited! Annual Accounting & Business Conference
Wednesday December 4 2019
Hosted at the MSU Management Education Center in Troy, MI
You're Invited! Construction Update
Thursday November 21, 2019
Detriot Athletic Club
241 Madison Avenue
Detriot, MI 48226