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if any shareholder in the corporation during that taxable year is
a pass-through shareholder; i.e., a trust, nominee, or similar
pass-through person. Because Primco's sole shareholders during
the years in issue were two grantor trusts, we hold that Primco
does not qualify under the small S corporation exception to the
unified S corporation audit and litigation procedures, section
301.6241-1T(c)(2), Temporary Proced. & Admin. Regs., and,
therefore, that the FSAA issued to Primco is valid.
Consequently, we shall deny petitioner's Motion to Dismiss for
Lack of Jurisdiction.
To reflect the foregoing,
An order will be issued
denying petitioner's Motion to
Dismiss for Lack of Jurisdiction.
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Last modified: May 25, 2011