- 3 -
Background
The facts may be summarized as follows. Flahertys Arden
Bowl, Inc. (petitioner), is a corporation organized under the
laws of Minnesota. Patrick F. Flaherty (Mr. Flaherty) owns 57
percent of the common stock of petitioner and is the secretary of
petitioner.
Mr. Flaherty is an attorney licensed to practice law in the
State of Minnesota. Beginning in 1968, Mr. Flaherty’s employer,
Moss & Barnett, P.A., maintained a qualified profit sharing plan.
Moss & Barnett, P.A., also maintained a qualified pension plan.
Both plans were trusts as defined in section 401(a) and were
exempt from tax under section 501(a). Mr. Flaherty participated
in both plans.
U.S. Bank, National Association, is the successor trustee of
both plans.2 Both plans were defined contribution plans and
provided segregated account balances for each participant. Both
plans permitted the participant to direct up to 100 percent of
the account assets.
During the period January 29, 1981, through June 15, 1982,
Mr. Flaherty directed the trustee of his profit sharing plan
2 First National Bank of Minneapolis was the original trustee
of both plans. In 1986, the trust department of First National
Bank of Minneapolis merged with First Trust Company of St. Paul.
First Trust Company of St. Paul became First Trust National
Association, which is now known as U.S. Bank, National
Association.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011