Recently, the United States Department of Labor (DOL) has been extremely aggressive in challenging transactions involving Employee Stock Ownership Plans (ESOPs). There are numerous current DOL investigations of ESOP transactions, and valuation takes center stage upon DOL scrutiny. These elevated trends are expected to remain for some time in the future. In reference to scrutiny […]
On Friday August 2, 2019, U.S. District Judge Norman K. Moon in the U.S. District Court for the Western District of Virginia ordered that Adam Vinoskey, the CEO of Sentry Equipment Erectors, Inc. (Sentry), and Evolve Bank and Trust (Evolve) are jointly liable for the losses an employee stock ownership plan (ESOP) suffered in a […]
As the nation’s premier gathering on employee ownership, the NCEO’s annual conference provides an ideal opportunity to learn, network, and share your knowledge with others. Our 2019 conference will take place in Pittsburgh, PA (April 9–11, with preconference on April 8) and will build on the sold-out success of our 2018 conference in Atlanta, where […]
On March 21, 2019, the U.S. Court of Appeals upheld a ruling that Wilmington Trust NA, (Wilmington Trust) a “premier provider of wealth and institutional client services for M&T Bank,” headquartered in Delaware, overvalued stock, causing the company’s employee stock ownership plan (ESOP) to overpay $29.8 million. The Virginia company, Constellis Group Inc. (Constellis) “provides […]
Read Bob Grossman’s article, “Enterprise Valuation after the TCJA,” published in the December 2018 issue of Practical Tax Strategies.
Read Bob Grossman’s article, “The Tax Cuts and Jobs Act and ESOP Valuations,” published in the October/November 2018 issue of Financial Valuation and Litigation Expert.
In a recent interesting District Court case in Florida [Joseph M. McKenny, 121 AFTR 2d 2018-337 (DC FL)], the court found that a settlement obtained in a “malpractice” lawsuit was nontaxable, while the legal fees and taxes associated with the settlement were found to be nondeductible. In this case, the plaintiff (Joseph McKenny) hired an […]
An employee stock ownership plan (ESOP) is a retirement plan that is permitted to invest some, or all, of its assets in employer stock. ESOP plans are often sponsored by small or mid-sized, closely held firms that are not traded on any public exchange or capital market. As such, there is no way of knowing if […]
The Senate Finance Committee in Congress held a recent hearing at the 215 Dirksen Senate Office Building titled: “Helping Americans Prepare for Retirement: Increasing Access, Participation and Coverage in Retirement Savings Plans.” Appearing as witnesses at the hearing were: Dr. Alicia Munnell Peter F. Drucker Professor of Management Science, Director Boston College Carroll School of […]
Hybrid defined benefit plans and Employee Stock Ownership Plans (ESOPs) are now included in the Internal Revenue Service’s preapproved plan opinion and advisory letter program as detailed in Revenue Procedure 2015-36 issued on June 9, 2015. Additionally, the number of adopting employers needed to qualify as a sponsor is reduced from 30 to 15. Use […]