Q: Is there a statue of limitation on compensation for shares?
My father gave me shares of his s-corp, roughly 30 years ago, and equates to 1/3 of the issued shares. Now he is incapacitated and I see how the corp distributes profit and losses to the shareholders in prior tax returns. I never received anything for my shares and he had kept them with his business documents. They are registered. He forgot about them, and I didn't remember until I saw the shares as well. I have asked for a K1 so I can file my taxes and get compensation, but the business attorney said all profits/losses go directly to the owners, which doesn't seem correct by past tax filings (which were wrong in terms of percent share ownership). Do I have a leg to stand on here and if so, what should be my next steps?
A: You describe a complicated situation that has many potential legal and tax issues - it’s even possible the company is no longer in existence. I think you need to consult personally with a business lawyer to review what documents you have, what documents are filed with the PA Department of State and to go through all the facts.
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