Wisconsin Firm’s ESOP Rightly Disallowed, US Tells Trial Court

The IRS properly penalized a set of affiliated Wisconsin businesses after determining their Employee Stock Ownership Plan wasn’t valid, the government said.

Responding to an array of procedural arguments raised by the S Corporation Solid Ground Transportation Inc. and its owners, Jeffrey and Elisha Daines, the agency told the US District Court for the Eastern District of Wisconsin on July 17 that it said it subjected the Daines ESOP to no special scrutiny.

The plaintiffs, which include the Daines and three business entities related to Solid Ground, have asked to the court to deny an IRS motion to dismiss their ...