{"abstract":"This document contains temporary regulations concerning requirements for employee stock ownership plans (ESOPs) holding stock of Subchapter S corporations. The temporary regulations provide guidance on identifying disqualified persons and determining whether a plan year is a nonallocation year under Section 409(p) and on the definition of synthetic equity under section 409(p)(5). These temporary regulations would generally affect plan sponsors of, and participants in, ESOPs holding stock of Subchapter S corporations. The text of the temporary regulations also serves as the text of the proposed regulations set forth in the notice of proposed rulemaking on this subject in the Proposed Rules section in this issue of the Federal Register.","action":"Temporary regulations.","agencies":[{"raw_name":"DEPARTMENT OF THE TREASURY","name":"Treasury Department","id":497,"url":"https://www.federalregister.gov/agencies/treasury-department","json_url":"https://www.federalregister.gov/api/v1/agencies/497","parent_id":null,"slug":"treasury-department"},{"raw_name":"Internal Revenue Service","name":"Internal Revenue Service","id":254,"url":"https://www.federalregister.gov/agencies/internal-revenue-service","json_url":"https://www.federalregister.gov/api/v1/agencies/254","parent_id":497,"slug":"internal-revenue-service"}],"body_html_url":"https://www.federalregister.gov/documents/full_text/html/2003/07/21/03-18210.html","cfr_references":[{"chapter":null,"citation_url":null,"part":1,"title":26}],"citation":"68 FR 42970","comment_url":null,"comments_close_on":null,"correction_of":null,"corrections":[],"dates":"Effective Date: These regulations are effective July 21, 2003.","disposition_notes":null,"docket_ids":["TD 9081"],"dockets":[],"document_number":"03-18210","effective_on":"2003-07-21","end_page":42977,"executive_order_notes":null,"executive_order_number":null,"explanation":null,"full_text_xml_url":"https://www.federalregister.gov/documents/full_text/xml/2003/07/21/03-18210.xml","html_url":"https://www.federalregister.gov/documents/2003/07/21/03-18210/prohibited-allocations-of-securities-in-an-s-corporation","images":{},"images_metadata":{},"json_url":"https://www.federalregister.gov/api/v1/documents/03-18210?publication_date=2003-07-21","mods_url":"https://www.govinfo.gov/metadata/granule/FR-2003-07-21/03-18210/mods.xml","not_received_for_publication":null,"page_length":8,"page_views":{"count":167,"last_updated":"2026-04-04 18:15:03 -0400"},"pdf_url":"https://www.govinfo.gov/content/pkg/FR-2003-07-21/pdf/03-18210.pdf","presidential_document_number":null,"proclamation_number":null,"public_inspection_pdf_url":null,"publication_date":"2003-07-21","raw_text_url":"https://www.federalregister.gov/documents/full_text/text/2003/07/21/03-18210.txt","regulation_id_number_info":{"1545-BC33":null},"regulation_id_numbers":["1545-BC33"],"regulations_dot_gov_info":{},"regulations_dot_gov_url":null,"significant":null,"signing_date":null,"start_page":42970,"subtype":null,"title":"Prohibited Allocations of Securities in an S Corporation","toc_doc":"Securities in an S corporation; prohibited allocations","toc_subject":"Income taxes:","topics":["Income taxes","Reporting and recordkeeping requirements"],"type":"Rule","volume":68}