IRS Didn’t Treat Company’s Stock Plan Unfairly, Judge Says

A set of Wisconsin businesses failed to convince a federal judge that the IRS is unfairly penalizing their Employee Stock Ownership Plan.

The US District Court for the Eastern District of Wisconsin dismissed a case brought by the S Corporation Solid Ground Transportation Inc., several affiliated entities, and their owners, Jeffrey and Elisha Daines.

Judge Byron B. Conway questioned the plaintiffs’ entire theory as “inferences and suppositions” that are based on a belief the IRS was unfairly singling them out because of assistance they got in setting up the ESOP from Lex Byers, who the IRS has in its own ...