Who's Online
7 user(s) are online ( 3 user(s) are browsing Articles, News and Announcements)
Members: 0
Guests: 7
more...
|
Big Story - Articles, News & Announcements There isn't a Biggest Story for Today, yet.
There are 4 article(s) in total
Top Articles, News & Announcements
|
Request for Technical Assistance (#1) Posted by esopwebmaster
(31)
|
| MEMORANDUM FOR DANIEL R. JONES, MANAGER, EMPLOYEE PLANS DETERMINATIONS QUALITY ASSURANCE
FROM: Andrew E. Zuckerman, Director, Employee Plans Rulings and Agreements
SUBJECT: Request for Technical Assistance (#1)
This Memorandum is in response to your Request for Technical Assistance, dated March 6, 2009, concerning immediate resale provisions in employee stock
ownership plans (within the meaning of Internal Revenue Code section 4975(e)(7)) and Internal Revenue Code section 409(h).
Issues
1. Whether a distribution from an employee stock ownership plan (“ESOP”) of stock that is subject to an immediate resale provision meets the requirements of Internal Revenue Code (“Code”) section 409(h), specifically the put option requirement of Code section 409(h)(1)(B).
2. Whether the immediate resale provisions set forth in Rev. Proc. 2003-23, as modified by Rev. Proc. 2004-14, may be applied to any distributions of stock from an ESOP or are limited solely to situations involving the rollover of S corporation stock from an S corporation ESOP to an IRA.
3. Whether distributions from an ESOP of stock that is subject to immediate resale provisions, in the case of a plan under which the trustee or plan administrator has discretion to determine which participants will receive distributions in cash and which participants will receive distributions in the form of
employer securities, violates the nondiscrimination requirements of the Code. |
|
|
-
[361]
Great ESOP Reading!
Just Published - "ESOP Forever" a book about the sustainable ESOP by acclaimed ESOP financial expert Thomas G. King, financial consultant to the design and implementation of America's first S corporation ESOP. The book is available in both paperback and hardcover format through AuthorHouse Publishing at www.authorhouse.com
-
[328]
DOL issues Guidance on ERISA Fidelity Bonding Requirements
The Department of Labor released Field Assistance Bulletin 2008-4 on November 25, 2008 to provide guidance on ERISA Fidelity Bonding Requirements. This Bulletin provides guidance, in a question and answer format, concerning the application of ERISAs bonding requirements and the Pension Protection Act changes. As of January 1, 2006, the maximum required bond ceiling was increased to $1,000,000. A full copy of the Bulletin is available via the downloads section of www.ESOP.US
-
[300]
Fiduciary Investigations Program
The United States Department of Labor
Employee Benefits Security Administration
Fiduciary Investigations Program
1. Statutory Requirements. The Employee Retirement Income Security Act (ERISA) expressly confers upon the Secretary direct responsibility and authority to investigate fiduciary violations of Title I of ERISA. In accordance with that authority, Program 48 will be used to investigate violations involving ERISA, Title I, part 4, sections 402, "Establishment of plan," 403, "Establishment of trust," 404, "Fiduciary duties," 405, "Liability for breach of co-fiduciary," 406, "Prohibited Transactions," 407, "10 percent limitation with respect to acquisition and holding of employer securities and employer real property by certain plans," 409, "Liability for breach...
-
[260]
ESOP.US launches ESOP Connections - Networking for the ESOP Community
April 30, 2009
ESOP.US launches ESOP Connections - Networking for the ESOP Community
ESOP.US, the website for the ESOP community is pleased to announce the launch of “ESOP Connections.” ESOP Connections is an online business and social networking service for the ESOP community that functions in a manner similar to other popular internet social networking services such as My Space, Face Book, and Linked-in, but with a specific focus upon the ESOP Community – Companies with employee stock ownership plans, ESOP employees and participants, and the professionals who advise them. To use this feature, users must first register as a website user – a free service. Once registered, a user may then create a profile, and then they may use the features of this service to...
-
[260]
Past President and CFO of California Company Sentenced to Prison for Embezzlement and Tax Evasion
On November 3, 2008, in Sacramento, Calif., Peggy Kaye Witts, of Redding, Calif., was sentenced to 46 months in prison and ordered to pay $824,333 in restitution to the Voorwood Company and $199,858 to the Internal Revenue Service (IRS) for federal wire fraud and tax evasion. Witts pleaded guilty in July 2008 admitting that, as Voorwood’s president, she engaged in a scheme to defraud the company by issuing duplicate paychecks to herself for more than four years and by issuing company checks to herself, family members, and others for her personal expenses. She also admitted to tax evasion based on her failure to report the embezzled money as income and to pay taxes on the money. She was ordered to turn over to the Voorwood Company, in partial satisfaction of her restitution obligation,...
-
[259]
NCEO/Beyster Institute 2009 Employee Ownership Conference
The 2009 Employee Ownership Conference, presented by the NCEO and the Beyster Institute, will take place in Portland, Oregon, on April 22-24, 2009 at the Hilton Portland and Executive Towers. We hope to see you there!
What to Expect: The conference provides learning and networking opportunities plus the flexibility to choose sessions from a wide range of subjects and levels of complexity. Daily general sessions draw attendees together for informative and inspiring updates on the world of employee ownership, but the rest of the program is up to you!
Who Should Attend? Anyone interested or involved in equity sharing as an effective business strategy will benefit from attending this event, including company presidents, owners, CEOs, executives, directors, managers,...
-
[252]
ESOP as a solution to the Credit Crunch
Current economic conditions and the bank lending environment have made it difficult for many business owners to implement business succession plans involving a sale of their ownership interest to current partners, younger management and employees. The ESOP may be the solution. In implementing an ESOP, one financing option is for the ESOP to issue a debt instrument to the selling owner, repayable via fully tax deductible payments over a term of up to 10 years.
-
[246]
Sample Plan Language - Transfer of an ESOP’s S Corporation Shares to Prevent a Nonallocation Year
employee plans news
Volume 9 - Spring 2009
The IRS has posted sample plan language for ESOPs, which revises the language released in the July 1, 2008 Special Edition of Employee Plans News. The language may serve as part of a comprehensive set of plan provisions designed to prevent the occurrence of a nonallocation year.
An 1120S corporation ESOP has a nonallocation year when disqualified persons are deemed to own 50% of the outstanding stock of the S corporation, taking into account synthetic equity. During a nonallocation year, disqualified persons may not accrue or be allocated any portion of plan assets consisting of employer securities. Such prohibited transactions in a nonallocation year are treated as deemed distributions from the plan. In addition, upon the...
-
[238]
IRS Final Sec. 108 Regulations Apply to Losses allocable to ESOP Shareholder
The IRS issued final regulations regarding Section 108 - Reduction of Tax Attributes for S Corporations, and the IRS preamble to the final regulations confirms that disallowed losses and deductions under section 1366(d)(1) of a shareholder that is an employee stock ownership plan (ESOP) are included in the S corporation’s deemed NOL. The IRS stated position is that Section 108(d)(7)(B) provides that any loss or deduction that is disallowed for the taxable year of the discharge under section 1366(d)(1) is treated as a deemed NOL of the S corporation. Accordingly, section 108(d)(7)(B) applies to any shareholder, including an ESOP shareholder, that has disallowed losses and deductions for the taxable year of the discharge under section 1366(d)(1).
-
[214]
COLA Increases for Dollar Limitations on Benefits and Contributions -
IR-2009-94, Oct. 15, 2009 - The Internal Revenue Service announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2010.
Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. In addition, section 415 requires the Commissioner to annually adjust these limits for cost-of-living increases. Other limitations applicable to deferred
compensation plans are also affected by these adjustments. The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) reset many of the statutory dollar amounts previously adjusted on an annual basis under section 415 of the Internal Revenue Code. Additionally, other new
limitation amounts were...
|
Topics - Articles, News & Announcements
Archives - Articles, News & Announcements
|
|
