What procedures must Flora Corporation follow in order to have its classification as a security corporation withdrawn?
DISCUSSION: In general, if a corporation is engaged exclusively in buying, selling, dealing in, or holding securities on its own behalf and not as a broker, it may elect tax treatment under G.L. c. 63, § 38B by applying to the Commissioner for classification as a security corporation. This election is voluntary. Accordingly, a corporation that has been classified as a security corporation may also elect to have that classification withdrawn by the Commissioner, even though it is still engaged exclusively in buying, selling, dealing in, or holding securities on its own behalf and not as a broker. In order to have its classification withdrawn, a corporation must notify the Commissioner of its election in writing. This notice must be on corporate letterhead and must be signed by the president, vice-president or clerk of the corporation. The notice must also include the corporation’s federal and Massachusetts identification numbers and a brief statement of the reason for the request. A not
