Kumar v. Comr., T.C. Memo. 2013-184

(petitioner was a 40 percent shareholder in an S corporation who received a Form K-1 for $215,000 of S corporation ordinary business income and $2,000 of interest; petitioner did not receive cash distribution and, after an accounting sold his stock to the S corporation in a complete redemption of his interest; petitioner did not report the K-1 income on the basis that he was not beneficial owner of his shares during year in question because he was frozen out as a shareholder; no agreement existed allowing other shareholder to take beneficial ownership away from petitioner and petitioner still had economic benefit of shares; petitioner liable for tax on share of S corporation income). 

CALT does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. CALT's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.

RSS​ Facebook Twitter