Primco Management Company, Alfred Dreyfus Goldman Revocable Living Trust, Alfred D. Goldman, Fiduciary, Tax Matters Person - Page 8

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          Petitioner argues that his position is further supported by                 
          section 301.6109-1(a)(2), Proced. & Admin. Regs., which provides            
          that a grantor trust is not required to obtain a separate tax               
          identification number, and by section 1.671-4(b), Income Tax                
          Regs., which provides that a grantor trust is not required to               
          file a separate tax return.                                                 
               We begin our analysis with the observation that section                
          1361(c)(2), which provides that a grantor trust may be a                    
          shareholder of an S corporation and that the deemed owner of such           
          grantor trust will be treated as the shareholder of the S                   
          corporation, expressly states that the provision applies for                
          purposes of section 1361(b), which is part of subtitle A.                   
          Significantly, section 1361 makes no reference to its                       
          applicability to section 6241, which is part of subtitle F, or              
          the regulations thereunder, nor is there any cross-reference in             
          subtitle F to section 1361.  Equally important, the two                     
          provisions are designed to serve two wholly independent purposes.           
          On the one hand, section 1361(c) is a substantive provision of              
          law--its primary purpose is to define the types of trusts that              
          are permitted to be shareholders of an S corporation.  In                   
          contrast, section 301.6241-1T(c)(2), Temporary Proced. & Admin.             
          Regs., is a procedural provision that defines the circumstances             

          Subpart E of part I of subchapter J contains the so-called                  
          grantor trust provisions.                                                   

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