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to a shareholder (for example, whether it is a
dividend, compensation, loan, or repayment of a loan);
(ii) The amount of money distributed to a
shareholder;
* * * * * * *
To the extent that a determination of an item relating
to a distribution can be made from these and similar
determinations that the corporation is required to
make, that item is a subchapter S item. To the extent
that the determination requires other information,
however, that item is not a subchapter S item. Such
other information would include the determination of a
shareholder's basis in the shareholder's stock or in
the indebtedness of the S corporation to the
shareholder.
In sum, section 301.6245-1T(c), Temporary Proced. & Admin. Regs.,
supra, provides in pertinent part: (1) An S corporation is
required to make determinations regarding the character and
amount of corporate distributions and shareholder contributions;
and (2) the determination of an item relating to such corporate
distributions and shareholder contributions qualifies as a
subchapter S item where the determination does not require "other
information" such as shareholder basis.
The parties agree that if the Court should sustain the
section 482 adjustments set forth in the FSAA’s, then the Court
would have jurisdiction to decide whether those adjustments
resulted in constructive corporate distributions and/or
shareholder contributions in these corporate level proceedings.
In other words, the parties agree that constructive corporate
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