Michael Ohsman owned 100 percent of a C corporation that was in the hide trading business.
He also established a Roth IRA. The Roth IRA purchased all the previously unissued stock of a foreign sales corporation (FSC). In other words, the FSC was a new corporation and the FSC was the first and only shareholder.
The C corporation made commission payments to the Roth-owned FSC in the amounts of $104,896, $3,152,714, and $3,585,712, respectively, for years 1, 2, and 3 at ... Log in to view full article.