Joseph R. Rollins - Page 3

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               After concessions by respondent,2 the issues for decision              
          are as follows:                                                             
                    (1) Whether any of petitioner’s company’s section                 
               401(k) plan’s loans to entities partially owned by                     
               petitioner constituted prohibited transactions within                  
               the meaning of section 4975.                                           
                    (2) If any of the loans were prohibited                           
               transactions, then whether petitioner had reasonable                   
               cause for any of his failures to file excise tax                       
               returns for 1998, 1999, and 2000.                                      
                                     Background                                       
               The instant case was submitted fully stipulated; the                   
          stipulations and the stipulated exhibits are incorporated herein            
          by this reference.                                                          


               2  On brief, respondent concedes that there were “loan                 
          interest payments, which reduce both the � 4975(a)&(b) excise               
          taxes.”  At another point on brief, respondent concedes that                
          “Petitioner has established that the principal of the loans was             
          repaid; there is still an issue whether the interest was paid.”             
          We assume that, where these concessions affect the sec. 4975(a)             
          excise taxes, these concessions may have consequential effects on           
          the determinations of additions to tax under sec. 6651(a)(1).               
               The parties have not presented any specific dispute as to              
          the extent of these concessions, and thus the instant report does           
          not deal with matter.  Any relevant unresolved dispute will be              
          dealt with in proceedings under Rule 155 or as may otherwise be             
          appropriate.  See Medina v. Commissioner, 112 T.C. 51 (1999).               
               Unless indicated otherwise, all Rule references are to the             
          Tax Court Rules of Practice and Procedure.                                  






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