Almost from the day of enactment of Subchapter S of the Internal Revenue Code in 1958, the single class of stock requirement has generated questions that have led to extensive litigation, repeated attempts to address the issues by regulation and numerous rulings in an effort to resolve the issues involved. The major area of concern has been the line between debt securities and equity interests, particularly where the debt securities represented shareholder loans.
"Single Class of Stock in S Corporations,"
Agricultural Law Digest: Vol. 3
, Article 1.
Available at: https://lib.dr.iastate.edu/aglawdigest/vol3/iss22/1