In Determining Whether a Distribution Qualifies as a § 303

question 182

True/False

In determining whether a distribution qualifies as a § 303 redemption to pay death taxes, the stock attribution rules must be applied.

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Definitions:

Actual Notification

For third parties who have previously dealt with the agent or who have begun to deal with the agent. This can be accomplished by (1) a direct personal statement to the third party or (2) a writing delivered to the third party personally, to his place of business, or to some other place reasonably believed to be appropriate.

Agency Termination

The process by which the relationship between a principal and their agent is ended, which could be due to expiration, mutual agreement, or other reasons.

Obligations

Legal or moral duties or responsibilities that an individual or entity is bound to perform or fulfill towards others.

Constructive Notification

For third parties who have previously dealt with the agent or who have begun to deal with the agent. This is accomplished by advertising the agency’s termination in a newspaper of general circulation in the place where the agency business regularly was carried on.