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Employee Stock Ownership Plan Services

Many companies with Employee Stock Ownership Plans (ESOP) have benefited from a third-party review by BlumShapiro. Companies are constantly dealing with regulatory, administrative and financial changes that can have a significant impact on their plan participants and company. Examples include:

  • 409(p) is an anti-abuse provision that requires an ESOP to perform extremely complicated and in-depth analysis. In the event of noncompliance with this provision, the ramifications are very severe.
  • Transactions between an ESOP and the corporation need to be both transparent and in accordance with the DOL and IRS. A failure to do this could lead to penalties or disgruntled participants.
  • Defining the roles of the ESOP trustees and management creates transparency in the decision-making process of the company and ensures decisions made are in the best interest of the ESOP participants. 
  • Companies owned by ESOPs also benefit from favorable income tax structures. However, there are also instances where the company may still owe state taxes. Failure to file in these states could open up the company to penalties or interest.

Our ESOP experience includes:

  • Significant experience evaluating compliance with Internal Revenue Code Section 409(p) and developing a model to assist clients with future compliance monitoring.
  • Proven methodology for reviewing transactions between the ESOP and the company to ensure appropriate recording of transactions.
  • Experienced assessment of current organizational chart and responsibilities to determine if there is transparency and if decisions are made in the best interest of the ESOP participants.
  • Deep expertise in identifying how potential issues, such as layoffs, may impact the ESOP.
  • Experienced tax professionals who understand the tax implications of operating in different states and the laws for failure to file in these states.

Contact our ESOP Team for more information:


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