The ESOP Association
ESOP Association Resources
Sep. 28
This is the first in a series of three articles regarding the preparation of the Section 409(p) test specific to S-Corporation ESOPs. Previously published articles have provided a general overview of how the test works and the dire consequences of failing the test, but this series will describe the mechanics and information required to perform the test.
Sep. 22
Notice to Taxpayers is Heavy on Innuendo, Light on Specifics
On August 9, the Internal Revenue Service issued a statement suggesting a greater focus in the next year on S-Corp ESOPs and tax compliance, particularly for companies with a parent holding or management company structure and certain owner finance arrangements. While very short on specifics, the IRS communication appears to be driven by aggressive marketing of ESOP plans by some, although the IRS provides no specific examples of where an ESOP has been used in the manner they suggest.
On August 9, the Internal Revenue Service issued a statement suggesting a greater focus in the next year on S-Corp ESOPs and tax compliance, particularly for companies with a parent holding or management company structure and certain owner finance arrangements. While very short on specifics, the IRS communication appears to be driven by aggressive marketing of ESOP plans by some, although the IRS provides no specific examples of where an ESOP has been used in the manner they suggest.
Sep. 18
In early August, judges convened at The ESOP Association’s headquarters in Washington, DC, to review all entries submitted for the 2023 Annual Awards for Communications Excellence, or the AACE Awards.
The competition for this year’s AACE Awards was fierce, with ESOPs submitting more exceptional entries than in 2022, making the judges’ job much harder. Entries are accepted from TEA members divided into two categories:
The competition for this year’s AACE Awards was fierce, with ESOPs submitting more exceptional entries than in 2022, making the judges’ job much harder. Entries are accepted from TEA members divided into two categories:
Sep. 08
Employee Ownership Foundation’s New ESOP Employee Accelerator Program Teaches Lifelong Business & ESOP Knowledge, Helps Employees Think and Act Like Owners
Jun. 24
Senator Van Hollen is a strong supporter of ESOPs and it was our pleasure to host him at the International Employee Ownership Center for an event. Employee owners in Maryland should be proud of his advocacy on their behalf.
Jun. 23
Employee ownership is continuing to see support in Congress, coming off two huge wins in the U.S. Senate. This time the House Appropriations Committee is considering a bill that would continue to direct the Small Business Administration to act in support of employee ownership. This effort continues the drumbeat in Congress, led by The ESOP Association, supporting employee ownership. Details are below.
Jun. 22
Senate Finance Committee passes the Enhancing American Retirement Now (EARN) Act, which includes a provision partially expanding section 1042 tax deferral to ESOPs that are S-corporations. The EARN Act section 1042 provision matches a similar provision in the Securing a Strong Retirement Act (H.R 2954) which passed the House of Representatives in March. The bill passed the Senate Finance Committee with unanimous support.
Jun. 17
The Senate Finance Committee today released a summary of the Enhancing American Retirement Now (EARN)
Jun. 14
The United States Senate Health, Education, Labor, and Pensions (HELP) Committee has passed S. 4353, the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg (RISE and SHINE) Act, which includes significant provisions that promote ESOPs and require the U.S. Department of Labor (DOL) to provide regulatory guidance the Association has been seeking for more than four decades.
Jun. 07
Comment Letter Forewarns against Future Use of Proposed New Regs Against ESOPs; Requests the Department hold Public Hearings