# Prohibited Allocations of Securities in an S Corporation
> **IRS** · Final regulations. · Published 2006-12-20 · Effective 2006-12-20 · 71 FR 76134
## Document
- **Document number:** E6-21669
- **Category:** tax-irs
- **Sub-agency:** IRS
- **Federal Register citation:** 71 FR 76134
- **CFR reference:** 26 CFR 1
- **Publication date:** 2006-12-20
- **Effective date:** 2006-12-20
- **Treasury docket:** TD 9302
## Abstract

This document contains final regulations that provide guidance concerning requirements under section 409(p) of the Internal Revenue Code for employee stock ownership plans (ESOPs) holding stock of Subchapter S corporations. These final regulations generally affect plan sponsors of, and participants in, ESOPs holding stock of Subchapter S corporations.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2006/12/20/E6-21669/prohibited-allocations-of-securities-in-an-s-corporation)
---
*AI Analytics · CC0 1.0*