Mini-cast 242: The IRS and ESOP Enforcement

Bret Keisling discusses a recent Internal Revenue Service press release and subsequent clarification that warned of potential IRS issues with ESOPs including valuation issues with employee stock, prohibited allocation of shares to disqualified persons, and failure to follow tax law requirements that would cause an ESOP loan to be a prohibited transaction, none of which are unusual issues for the IRS to highlight. Notably, the IRS highlighted ESOP Management companies (not holding companies) that seem designed to replace taxable income with loans as a way for high earners to avoid taxes. The links to blog posts on this topic and the videocast and full transcript of this episode are on our website at https://www.theesoppodcast.com/post/mini-cast-242-the-irs-and-esop-enforcement