Mr. Shaw's presentation emphasizes the need to focus attention on the difficulties the proposed rules may cause when selling stock in small corporations and argues that the repeal of General Utilities may be more burdensome to the closely held corporation where the assets distributed in a complete liquidation may be ordinary and not capital gain assets, thus increasing the cost of liquidation to an amount higher than 50%, and the search for non-corporate entities for conducting business. However, Mr. Shaw sees the proposed changes as aiding the small corporation, in avoiding complexity, and generally having a better chance of coping with the tax Structure. Mr. Lang discusses some of the problems in the day-to-day life span of a closely held corporation and provides a chronology of key events that occur in the various phases of a corporate business.
Richard A. Shaw & Dudley M. Lang,
The Impact of Proposed Corporate Tax Reform on Closely Held Corporations,
San Diego L. Rev.
Available at: https://digital.sandiego.edu/sdlr/vol22/iss1/9