If the consideration is IP or service to be rendered, the stocks issued will be treated as Subscription Receivable upon issuance of shares as the IRS has clearly stated that IP of this nature is deemed a prepayment for future services, and thus cannot be treated as an item of value to be exchanged.
In this case, we recommend that the Subscription Receivable be paid by the Shareholder promptly as the amount of cash required is usually nominal. This would be achieved by the affected shareholder by simply depositing the cash equal to the Subscription Receivable into the bank account connected to inDinero.
Our comments may not contain a full description of all the facts or a complete exposition and analysis of all relevant authorities. Furthermore, the use of certain words such as “should, would, or will” is merely for grammatical convenience, is not intended to indicate a specific level of authority regarding a particular issue, and no explicit or implicit references should be taken there from. Our comments expressed herein are based upon the provisions of the Internal Revenue Code and Regulations in force on the date hereof, all proposed amendments to these Acts, Regulations and treaties publicly announced by the relevant authorities. Each and all of these authorities are subject to change at any time. Any such change could be given retroactive effect with respect to the transactions described herein and could cause the conclusions provided to become invalid, in whole or in part, with respect to any entity involved. There can be no assurance that these authorities will not disagree with, or challenge, the views set forth in this memorandum or that any such challenge will be unsuccessful.