Mandatory Redeemable Preferred - Equity Not Debt, According to IRS
Recent Buzzes - VC Experts, Inc.
SEPTEMBER 22, 2010
It was crucial to the Fund's operation as a RIC, because dividends with respect to equity issued by a RIC?-?as If the New Preferred Shares failed to qualify as equity for federal tax purposes, the dividend-accounting mechanism that ensures subchapter M compliance would likely fail to preserve the Fund's status as a RIC.?It Joyce, Partner, firstname.lastname@example.org. By Thomas F. Joyce and Theodore L.