Tax Court Decision Highlights the Importance of Following the ESOP Plan

An abstract image of so many options.

Here is just a quick note.

This is a great summary by FMV Opinions of Flemming Cardiovascular, P.A.  vs. Commissioner released November 23, 2015 where the court found in favor of the IRS. The court determined that the ESOP did not follow its governing documents.  This puts taxpayers on notice that if the owners of the firm do not carry out their roles properly, the IRS can and did revoke the taxpayer's ESOP plan and tax exempt status. That is a major "ouch." I want to thank FMV Opinions for staying on top of this and for providing a nice concise timely commentary.

Happy Thanksgiving!

About the author

Mike Gregory is a professional speaker, an author, and a mediator. You may contact Mike directly at and at (651) 633-5311. Mike has written 12 books (and co-authored two others) including his latest book, The Collaboration Effect: Overcoming Your Conflicts, and The Servant Manager, Business Valuations and the IRS, and Peaceful Resolutions that you may find helpful. [Michael Gregory, ASA, CVA, MBA, Qualified Mediator with the Minnesota Supreme Court]