Final answer:
The statement is false; stock received in exchange for services may be considered under certain circumstances in determining if the control test is met for §351 purposes, specifically when there is also a transfer of property that meets the control test on its own.
Step-by-step explanation:
The statement that stock received in exchange for services provided to the corporation in the formation of the corporation can never be counted in determining if the control test is met for §351 purposes is false.
According to Internal Revenue Code Section 351, the control test is generally met if the transferors of property end up in control of the corporation immediately after the exchange, with control defined as owning at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of the total number of shares of all other classes of stock of the corporation.
Services are typically not considered property for purposes of §351. However, if a person receives stock both for services and for the transfer of property, and the property transferred meets the 80% control requirement without considering the value of the stock received for services, then the transfer can meet the control test for §351 purposes.