Search CompleteMarkets

... ETC. 5.1 Objectives of buyers and sellers of agencies. In the typical s...t of a decedent, suffering both estate and income tax (with

... residual method' of allocating payments. The IRS will first allocate payments to the hard assets of the agency, and then allocate any residual value to the intangible assets. Since all these assets are now amortized over 15 years, the distinction among them seems to have disappeared. The buyer of stock takes over the corporation's liabilities, as well as its assets. Buyer may ask seller to indemnify him against some liabilities, such as taxes, E&O claims, or major accounts lost within a short time after the acquisition. ... computed. IRC Section 3121(v ) . Payments to S corporation stockholder Payments to an S corporation stockholder are normally not compensation, and there is no withholding. Rev Rul 59-221, 1959-2 CB 225. However, if such payments are made to an officer or director, withholding may be required. See 1992 Pub. 589, Tax Information on S Corporations, p. 11. Continuing as a solicitor Not infrequently a retiring producer wants to continue to place some new business as a solicitor. A solicitor should be an independent ... (10), Reg. 1-1402(a )17(c )( 1 ) . Covenants not to compete Generally, non-competition payments are not subject to withholding. H. R. Barnett (1972) 58 T.C. 284. However, where a corporate officer had a duty to consult with the corporation and could not consult for others, a duty to withhold was found. F. W. Stevens (CA11 1983) 707 F.2d. 478. The moral seems to be not to link a covenant not to compete ...