Today is the annual office golf outing. It’s also the one time I play golf each year.
For some reason golf is supposed to be fun for everyone, not just the three or four people in the office who actually have enough skill to enjoy the game. I have proposed alternative field days, including all-office chess tournaments, shooting, rock climbing — things where I might be competitive — and have made no progress. So golf it must be.
But I will wear my New Mexico hat, that’ll show them.
This case generated a controversial Iowa Supreme Court decision on the rights of minority shareholders. The decision covered in Roger’s article was the trial court’s attempt to apply the Supreme Court’s decision to the facts in the case. Roger concludes:
The trial court’s remand decision is welcome relief for closely-held corporations in Iowa from an Iowa Supreme Court decision that is out-of-step with reality. To find, as the Iowa Supreme Court did, that there can be shareholder oppression (with the likely result of corporate liquidation) where there isn’t even an allegation of a breach of fiduciary duties by the controlling shareholders would result in, as the trial court’s remand decision points out, oppression of the majority and could also result in corporate liquidation anytime a minority shareholder wants to “cash-out” for personal gain (as in the present case). The trial court’s decision also upholds the use of bylaws that set forth stock valuation upon buy-out. In this case, the Iowa Supreme Court allowed the minority shareholder to ignore the bylaw setting forth the valuation methodology for a buy-out (which he drafted), but the trial court held him to it. That’s more welcome news for closely-held corporations.
This, too, can and probably will be appealed.
Paul Neiffer, Pay Your Kids; It Saves Taxes!:
A farmer who operates as a sole proprietor may pay their children under age 18 wages and be exempt from payroll taxes. If the farmer operates as a partnership (either regular or a LLC taxed as a partnership), paying wages to children under age 18 is still exempt from payroll taxes if the only partners of the partnership/LLC are parents of the children.
But grandpa is out of luck.
From Jim Maule’s Tax Myths series, Retired People Do Not Pay Income Tax
Peter Reilly,Don’t Leave Money To Children Buried Under IRS Liens. “Leaving money to someone who is subject to IRS liens can be like leaving money to IRS.”
Keith Fogg, When Should Bankruptcy Court Hear a Tax Case (Procedurally Taxing).
TaxGrrrl, Guilty Plea In One Of The Largest, Longest Running Tax Fraud Schemes Ever. Kelly explains how some New York grifters milked the Treasury for years, stealing $65 million under the nose of Doug Shulman.
Joseph Henchman, Maryland Argues There’s No Constitutional Bar to Taxing Over 100% of Residents’ Income. Maryland argues that it doesn’t have to allow a credit against county taxes for taxes paid in other states. Joseph argues, I think correctly, that Maryland’s position is an unconstitutional burden on interstate commerce.
Howard Gleckman, How REIT Spinoffs Will Further Erode the Corporate Tax Base‘ (TaxVox).
TaxProf, The IRS Scandal, Day 449
Kelly Davis, ales Tax Holidays = Not Worth Celebrating (Tax Justice Blog). “In the long run, sales tax holidays leave a regressive tax system basically unchanged.”
Iowa’s sales tax holiday for clothing and footwear is today and tomorrow.
News from the Profession. Teamsters Get Dynamic With a Giant Rat at Grant Thornton’s Downtown NYC Office (Adrienne Gonzalez, Going Concern)