Forgiven Executive Loans: Compensation Income with Some Unsavory Twists

Challenge Points
This article, written by Mike Lloyd,  analyzes the federal tax treatment of a discharge of loans made by a corporation to executive officers of the corporation’s wholly owned subsidiary. This issue remains important even though section 402(a) of the Sarbanes-Oxley Act of 2002 (“SOX”) prohibits a public company from extending credit to an executive officer or director of the company on or after July 30, 2002.
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