The seventy-six mistakes covered in this book are not hypothetical scenarios that might disrupt your business. None is anything out of the ordinary; none is made up. Each actually occurs and, more important, occurs on a more-or-less regular basis. Tax advisers see them over and over again. Indeed, as I was preparing this afterword, a very successful businessperson reported to his attorney that his S corporation had recently admitted as a shareholder another corporation formed by two people who wanted to invest in his business. Any problem there? Indeed there was, he was told, but a problem that, if attended to promptly, could be undone -- by collapsing the investing corporation so that the investors owned stock directly in his company, and by writing a very apolegetic letter to the IRS. No problem, the businessman replied; he would attend to that forthwith. Then his attorney asked him one more question: Were these individuals both U.S. citizens or residents? "No," he said, "They're French. They live in Paris. Is that a problem?"
And so it goes. Businesspeople, understandably more interested in their businesses than in the government's out-of-left-field regulations, march right into the traps that the tax laws have set. The