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

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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