Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 70-58

1970-1 C.B. 268

IRS Headnote

The executor of an estate that holds two percent of a corporation's outstanding stock is regarded as the shareholder for purpose of inspection of the corporation's income tax returns; S.M. 1889 superseded.

Full Text

Rev. Rul. 70-58 /1/

A taxpayer died possessed of two percent of the outstanding shares of stock of a corporation. These shares are part of the decedent's gross estate. The executor of the estate desires to inspect the income tax returns of the corporation.

Section 301.6103(c)-1(a) of the Regulations on Procedure and Administration, relating to inspection of corporation returns by shareholders, provides that the privilege of inspecting returns by shareholders owning one percent or more of the outstanding stock of a corporation is personal to the shareholder and cannot be delegated.

Held, the executor is regarded as the shareholder for the purpose of inspection of the income tax returns of the corporation. See section 301.6103(c)-1(b) of the regulations for requirements relating to applications to inspect returns.

S.M. 1889, C.B. III-1, 375(1924), is hereby superseded since the position stated therein is set forth under the current statute and regulations in this Revenue Ruling.

/1/ Prepared pursuant to Rev. Proc. 67-6, C.B. 1967-1, 576.