Discussion:Constructive Dividend of C Corp

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

(Difference between revisions)
Jump to: navigation, search

TTMM (Talk | contribs)
(New Discussion)
Next diff →

Revision as of 00:22, 1 September 2009

Discussion Forum Index --> Advanced Tax Questions --> Constructive Dividend of C Corp
Discussion Forum Index --> Tax Questions --> Constructive Dividend of C Corp

TTMM (talk|edits) said:

1 September 2009
My client, a C Corp, was audited by the IRS and the RA disallowed some items totaling around $150K and made them constructive dividends to the three shareholders. On the individual returns he assessed tax on the $150K on each return instead of assessing tax on $50K on each return. Am I missing something? Shouldn't each shareholder pay tax on $50K? The audit report says that the $150K constructive dividend is being assigned individually and severally to each shareholder. I really appreciate everyones help and advice. Thanks
Retrieved from "http://www.taxalmanac.org/index.php/Discussion:Constructive_Dividend_of_C_Corp"