Lear Eye Clinic, Ltd., et al. - Page 13

                                                   13                                                     
                  On the surface, Pallin's service as a sole proprietor                                   
            followed by the formation of Lear and the continuation of the                                 
            medical practice as a corporation technically involved a change                               
            in the employer.  Lear was the employer after the incorporation,                              
            and Lear did not exist prior to that time.  This analysis,                                    
            however, ignores that Pallin continued performing the same                                    
            services in the corporate form that he had performed as a sole                                
            proprietor.  There was no lapse in time between the medical                                   
            practice's transition from a sole proprietorship to a                                         
            corporation.  Pallin continued to own a majority interest in the                              
            practice, and the practice remained in Phoenix.  Pallin's                                     
            professional duties and responsibilities did not change under the                             
            corporate form, nor did the administration of the medical                                     
            practice under the corporate form.  The composition of the                                    
            medical practice's staff, physicians, or patients did not change                              
            as a result of the transition to corporate form.  These factors                               
            lead to the conclusion that the administration of the medical                                 
            practice and the substance of Pallin's business operations                                    
            remained the same despite the technical change in Pallin's                                    
            employment relationship after the formation of Lear.                                          
            Accordingly, we conclude that Pallin's years as a sole proprietor                             
            constitute "years of service with the employer" for purpose of                                
            section 415(b)(5).  To conclude otherwise would elevate form over                             
            the obvious continuity in Pallin's service before and after the                               
            formation of Lear.                                                                            




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011