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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6104
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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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.