A woman owned stock in an S firm. After shareholder relations soured, she was shut out of the business. The company nevertheless sent her a K-1 form listing her share of the profits, which she decided not to report on her tax return. She instead attached a statement claiming that the firm and controlling shareholder barred her from exercising her shareholder rights. However, she owned the stock and must pay tax on her share of the company’s income (Enis, TC Memo. 2017-222).