Much of the IRS's current position is based on IRC sections 2703 (enacted to address the effect of buy/sell agreements and options on the value of closely held
business interests) and 2704, "Treatment of Certain Lapsing Rights and Restrictions." These sections are both part of chapter 14 of the tax code and were included in legislation enacted by Congress in 1990.
With interest rates at historic lows, many companies are taking advantage of the low cost of capital and issuing debt Some closely held
companies are "buying down" rates by issuing stock warrants with their debt.
When a closely held
business is a major marital asset, it can be a roadblock to an easy division of property when the spouses divorce.
Although contingent compensation arrangements are often an indispensable part of the business world, they are subject to special scrutiny in closely held
Business Planning: Closely Held
Enterprises, 5th Edition
Our article extends He and Sommer (2011) by decomposing stock insurers into publicly traded and nonpublicly traded (closely held
) entities and breaking down both types of stocks into family-owned and nonfamily-owned categories.
Hobby Lobby Stores, Inc., the Court held that the ACA's contraceptive mandate violates the Religious Freedom Restoration Act as it is applied to "closely held
corporations." The Supreme Court decision only relates to the contraceptive mandate and only applies to closely held
companies whose owners can show they have sincere religious objections to the mandate.
THE CLOSELY HELD
CORPORATION AND THE DOCTRINE OF SHAREHOLDER
The government also is looking to extend the revised opt-out process to closely held
for-profit companies that have religious objections to providing birth control coverage.
When explaining the rationale for treating a closely held
, for-profit corporation as a "person" under RFRA, the majority opinion pointed to HHS's concession that a nonprofit corporation can be a "person" under RFRA.
The bank specializes in serving the banking needs of closely held
businesses and the people who manage them.
In some states, however, the requirements for "closely held
corporations" may be relaxed.