§ 5155 Disqualified Shareholder Income Restriction

• •If a shareholder in an accounting company becomes disqualified (like losing their license), they can't get money from the work done while they were disqualified.
• •The company can't pay them or give them any benefits from that work.
• •This rule is to make sure only qualified people get paid for accounting work.

An accountant loses their license but still owns part of the company. The company keeps working and making money.

The accountant who lost their license can't get any of the money the company makes while they're disqualified. The money must go to the other qualified accountants.