Affiliated service group?

[Bird]

Doctor is in a large partnership (100 or so) and gets a K-1. For unknown reasons, they also pay his S-corp for services (he says management but I think it is an arbitrary splitting of income). He wants to set up a plan for his S-corp.

I have a vague recollection of "management" being problematic, but also some kind of a percentage threshold...ok, I know nothing.

Any thoughts about whether/how this could be or not be an ASG?

[Lou S.]

The management regs were withdrawn.

I hate ASG determinations but my guess is in this situation it is most likely an ASG, especially if 100% of the S-corp income is from partnership. And for what it is worth I agree with your "arbitrary splitting of income" comment.

[ETA Consulting LLC]

Management Group rules are still in the Code. The withdrawals of IRS Regulations on the matter simply means that the IRS offers no guidance, but it's still a rule. In this case, you clearly have 100% of the income being derived from "what HE classifies as Management".

By HIS own admission, it seems like a Management Group to me.

Good Luck!

[Bird]

Thanks for the feedback.