Tax Law

Taproot Admin. Servs. v. Comm'r, 2009 U.S. Tax Ct. LEXIS 29 (T.C. Sept. 29, 2009)

An Individual Retirement Account (IRA) is not authorized to hold S Corporation stock.  IRAs are not included in the listing of qualified S Corporation owners enunciated in IRC Section 1361. An IRA cannot qualify as a custodial account or grantor trust in determining its eligibility as an S Corporation shareholder. Nor did Congress intend to authorize IRA ownership of S Corporation stock in the absence of explicit statutory direction. 
 

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