Revenue Ruling 2003-27

[Guest erisaauditor]

The following link from the IRS indicates that S Corporation owned ESOPs are required to report the S corporation's income from the taxable year on Form 5500. See the section titled "FACTS".

Generally the only income within the trust is the stock value change and some interest income.

I'm uncertain as to how the S Corporation's pro rata share of income would be reflected on the Form 5500.

Does anyone have experience with this? If it's true what is the other side on the entry on the plan accounting?

http://www.unclefed.com/Tax-Bulls/2003/rr03-27.pdf

Thanks,

erisaauditor