# Prohibited Allocations of Securities in an S Corporation
> **IRS** · Temporary regulations. · Published 2003-07-21 · Effective 2003-07-21 · 68 FR 42970
## Document
- **Document number:** 03-18210
- **Category:** other
- **Sub-agency:** IRS
- **Federal Register citation:** 68 FR 42970
- **CFR reference:** 26 CFR 1
- **Publication date:** 2003-07-21
- **Effective date:** 2003-07-21
- **Treasury docket:** TD 9081
## Abstract

This document contains temporary regulations concerning requirements for employee stock ownership plans (ESOPs) holding stock of Subchapter S corporations. The temporary regulations provide guidance on identifying disqualified persons and determining whether a plan year is a nonallocation year under Section 409(p) and on the definition of synthetic equity under section 409(p)(5). These temporary regulations would generally affect plan sponsors of, and participants in, ESOPs holding stock of Subchapter S corporations. The text of the temporary regulations also serves as the text of the proposed regulations set forth in the notice of proposed rulemaking on this subject in the Proposed Rules section in this issue of the Federal Register.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2003/07/21/03-18210/prohibited-allocations-of-securities-in-an-s-corporation)
---
*AI Analytics · CC0 1.0*