TAX COURT: ROTH IRA CAN'T OWN S CORPORATION STOCK

On September 30, 2009, the Tax Court took 26 pages to decide that a Roth IRA is not a qualified S corporation shareholder -- a lot of effort to come to an obvious answer. While that seems like a long road to get to the right place, it could have been worse. Four of the Tax Court judges took 31 pages to get to the wrong answer, in dissent.