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article from The Tax Adviser,
published by
American Institute of CPA's on
October 1, 1992. The length of the
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From the supplier: A challenge to a leveraged purchase of company stock by an employee stock ownership plan (ESOP) by the Labor Department (DOL) has remained an issue even though the DOL dropped the case. The Farnum case was over the possible cash drain on the ESOP by repaying the loan. The IRS has taken up this theory, even though the DOL claims to have rejected it. This policy could have a chilling effect on leveraged ESOP purchases.
Citation DetailsTitle: ESOP valuations: does Farnum still live? (employee stock ownership plan purchases of company stock objected to by Labor Department)
Author: Louis H. Diamond
Publication:The Tax Adviser (Magazine/Journal)
Date: October 1, 1992
Publisher: American Institute of CPA's
Volume: 23
Issue: n10
Page: 658(2)
Distributed by Thomson Gale.
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