- 5 -
promissory notes as their share of the first and second
distributions paid by EMFI for its fiscal year ended October 31,
1993.
EMFI's Form 1120S for the fiscal year ended October 31,
1993, indicates on line 20 of Schedule K, Shareholders' Shares of
Income, Credits, Deductions, etc., that EMFI made a distribution
other than dividends of $2,318,872. Line 22 of Schedule K
provides a place for taxpayers to report "Total dividend
distributions paid from accumulated earnings and profits". EMFI
did not report any amount on line 22. EMFI's Schedule M-2,
Analysis of Accumulated Adjustments Account, Other Adjustments
Account, and Shareholders' Undistributed Taxable Income
Previously Taxed, for the same year indicates on line 7 that EMFI
made a nondividend distribution of $2,318,872. Schedules K-1,
Shareholder's Share of Income, Credits, Deductions, etc., for the
same time period indicate on line 20 that EMFI made a nondividend
distribution to Mr. and Mrs. Thurman in the respective amounts of
$758,745 and $1,228,320.
EMFI issued Forms 1099 to the shareholders for 1992
reflecting the first distributions for its fiscal year ended
October 31, 1993, as taxable dividends. EMFI did not issue any
Forms 1099 for either 1992 or 1993 with respect to the second
distribution it declared for the fiscal year ended October 31,
1993.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011