Personal loan against business to get equity without tax

[randrews]

What is the name of your state? Georgia

What IRS tax regs are violated when any person uses a business loan against his business and does not pay any interest?

What if that person uses the loan to avoid IRS income taxes, what regs are violated?

 

[LdiJ]

What is the name of your state? Georgia

What IRS tax regs are violated when any person uses a business loan against his business and does not pay any interest?

What if that person uses the loan to avoid IRS income taxes, what regs are violated?

No regs have necessarily been violated at all....nor would the loan necessarily avoid income tax.

We would have to know a lot more info, including the type of business entity, before anyone could even hazzard a guess.