Form 4577 - Business Tax Schedule Of Shareholders And Officers

Column E: Enter the percentage of outstanding stock

Stock Percentage

each shareholder or C Corporation officer owns directly.

Column E

Column F

Column G

If a shareholder owned stock for a period less than the

Husband

100%

70%

Corporation’s tax year, multiply that shareholder’s percentage

40%

(active)

(all shareholders)

(husband/wife/son)

of ownership by the number of months owned and divide the

Wife

100%

result by the number of months in the Corporation’s tax year.

10%

(inactive)

(all shareholders)

Taxpayers must account for 100 percent of the stock. If it is not

Son

70% (husband/

70%

accounted for, processing of the return may be delayed.

20%

(inactive)

wife/son)

(husband/wife/son)

Column F: Enter the percentage of outstanding stock each

Daughter

80% (husband/

40%

shareholder owns, including attribution of ownership from family

30%

(active)

wife/daughter)

(wife/daughter)

members under IRC § 318(a)(1). If no attribution exists, enter the

percentage from column E in column G and leave column F blank.

Column I: Enter total dividends received by each shareholder

Column G: When reporting ownership of a person who

during the tax year from this business (used to determine active

is an active shareholder, do not include in Column G any

shareholders). This includes regular distributions for an S

stock ownership attributed to this person from another

Corporation.

active shareholder. See definition of active shareholders in

Column J: Enter salaries, wages, and director fees that are

the Part 3 instructions. For the purposes of determining

attributable to each shareholder or C Corporation officer.

disqualification for the Small Business Alternative Credit, an

Compensation paid by a professional employer organization to

active shareholder’s share of business income is not attributed

the officers of a client (if the client is a C Corporation) and to

to another active shareholder.

employees of the professional employer organization who are

EXAMPLE: In this case, the husband and daughter are

assigned or leased to and perform services for a client must be

active shareholders because compensation, director fees, or

included in determining the eligibility of the client for this credit.

dividends from the business are greater than $10,000. The wife

and son are not active because compensation, director fees, or

NOTE: If a shareholder owned stock for less than the entire

tax year of the corporation, or an officer served as an officer

dividends from the business are less than $10,000.

ATTRIBUTION EXAMPLE:

Husband of Betty Stone, Father of Mary Stone, Stepfather of Tammie Rock, Step Grandfather of Kathy Rock

Larry David Stone

Daughter of Bob Pebble, Wife of Larry Stone, Mother of Tammie Rock, Stepmother of Mary Stone, Grandmother of Kathy Rock

Betty Ann Stone

Daughter of Larry Stone, Stepdaughter of Betty Stone

Mary Elizabeth Stone

Daughter of Betty Stone, Stepdaughter of Larry Stone, Spouse of Steve Rock, Mother of Kathy Rock, Granddaughter of

Tammie Marie Rock

Bob Pebble

Spouse of Tammie Rock, Father of Kathy Rock, Brother of Mike Rock

Steve Carl Rock

Daughter of Tammie and Steve Rock, Granddaughter of Betty Stone, Step Granddaughter of Larry Stone

Kathy Evelyn Rock

Brother of Steve Rock

Mike Joseph Rock

Father of Betty Stone, Grandfather of Tammie Rock

Bob Kenneth Pebble

Friend

Terry Robert Marble

Part 1: Shareholders and officers - See instructions

Part 2: List of family members and their corresponding relationships

Name of shareholder (including corporation, trust,

Check (X) if

Member

or partnership), officer, or family member receiving

Member

No Attributable

Number

compensation from the business (Last, First, Middle)

Number

Child

Grandchild

Spouse

Parent

Relationship

Stone, Larry David

Stone, Betty Ann

Stone, Mary Elizabeth

Rock, Tammie Marie

Rock, Steve Carl

Rock, Kathy Evelyn

4-5

Rock, Mike Joseph

Pebble, Bob Kenneth

Marble, Terry Robert

104

Form 4577 - Business Tax Schedule Of Shareholders And Officers - 2014 Page 4

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