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.
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You're Invited! Annual Not-For-Profit Accounting Update
Thursday, September 26, 2019
Hosted at Detroit Historical Museum
Save The Date!
Middle Market Manufacturing Outlook
Wednesday, October 23
Hosted at the Detriot Athletic Club
7:30 AM - 11:30 AM