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Tax Law for the Closely Held Business

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Shareholder Oppression, S Corps, & A Second Class of Stock?

By Farrell Fritz P.C. on July 16, 2018
Posted in Federal Tax Issues

Woe to the Oppressed Shareholder
As I write this post on Bastille Day, I am reminded how an oppressed people, realizing the injustice of their circumstances, and having reached the limits of their endurance, took the first step toward “replacing” the lords and ladies that had long lived lavishly on their labors. [1]

If…

The Disgruntled Shareholder & “Breaking” the S Election, Part II

By Farrell Fritz P.C. on May 27, 2015
Posted in Federal Tax Issues

Part I of this post can be found here.

Potential Transferees

Now that the disgruntled shareholder has decided to transfer his or her shares to an ineligible shareholder, the transferee must be selected, as must the method of transfer.

This is a very critical point in the process because the shareholder must balance two competing…

The Disgruntled Shareholder & “Breaking” the S Election, Part I

By Farrell Fritz P.C. on May 26, 2015
Posted in Federal Tax Issues

During the course of the year, we encounter a number of shareholder disputes. Sometimes we represent a minority shareholder; sometimes we represent the corporation or the majority shareholders. shareholderlit-300x263

Regardless of who the players are, the resolution of the dispute will involve some economic deal. The economic deal, in turn, will depend in no small part…

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