Final answer:
The statement "The family attribution rules can be waived in a complete redemption of stock by a shareholder." is True because in such cases, when an entire interest in the corporation is redeemed, the Internal Revenue Code typically disregards the family attribution rules for determining sale or exchange treatment.
Step-by-step explanation:
The family attribution rules in the context of stock redemption usually apply when determining if a redemption qualifies for sale or exchange treatment. However, in a complete redemption of stock, the Internal Revenue Code (IRC) allows for the waiver of family attribution rules.
When a shareholder's entire interest in the corporation is redeemed, the family attribution rules are generally disregarded. This means that for the purpose of determining whether a complete redemption qualifies for sale or exchange treatment, the rules regarding ownership attribution within families are typically waived.
Therefore, in the scenario of a complete stock redemption, the family attribution rules do not restrict the treatment of the transaction, allowing for their waiver to facilitate the process without considering family relationships in determining the tax treatment of the redemption.