How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Stephen G. Your Own Question
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7072
Experience:  Extensive Experience with Tax, Financial & Estate Issues
Type Your Tax Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

2010 tax return draft is being reviewed. The tax professionals

Customer Question

2010 tax return draft is being reviewed. The tax professionals noted that:
An IC DISC associated with an S-corp was effective throughout the tax year and qualified DISC distributions were made. The shareholder of the S-corp and the DISC were the same individual "J" through Apr 10. In Apr 10 the DISC interests and S-corp stock were assigned to a grantor trust in which "J" is sole beneficiary and which has a qualification to hold S-corp interests. The tax CPA thinks the DISC may no longer be valid due to the transfer of individual interests to that of the grantor trust. What is your opinion?
Submitted: 5 years ago.
Category: Tax
Expert:  Stephen G. replied 5 years ago.

Stephen E. Grizey :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.

Stephen E. Grizey :

Sorry, I'm not current on the law/regulations relating to DISCs. Let's see if another expert can pick this one up.