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Question 83: For purposes of attribution under IRC 318 (which determines the ownership of stock for purposes of the definitions of highly compensated employee and affiliated service group), is there attribution between a stepchild and a stepparent? What if the stepchild is adopted? |
Answer: IRC 318 says "An individual shall be considered as owning the stock owned, directly or indirectly, by or for ... his children, grandchildren, and parents." It adds that "a legally adopted child of an individual shall be treated as a child of such individual by blood." Of course, there would be attribution from child to natural parent, but there would not be a second level of attribution from the natural parent to the stepparent, because that would violate section 318's prohibition on double family attribution. |
Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
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