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Sec. 4980A(e)(1). As relevant herein, section 4980A(e)(2)
defines a qualified employer plan as "a plan described in section
401(a) which includes a trust exempt from tax under section
501(a)". A qualified employer plan includes any plan which, at
any time, has been determined by the Commissioner to be such a
plan.
Petitioners contend that the Retirement System has never met
the definition of a qualified employer plan. In advancing this
contention, petitioners rely on section 54.4981A-1T(a-
3)(c)(2)(i), Temporary Qualified Pension Plan Excise Tax Regs.,
52 Fed. Reg. 46750 (Dec. 10, 1987). This regulation provides, as
relevant herein, that "an employer plan will be considered to
have been treated as a qualified employer plan if any employer
maintaining the plan has at any time filed an income tax return
and claimed deductions that would be allowable under section 404
(and that were not disallowed) only if the plan was a qualified
employer plan under section 401(a) or 403(a)." Petitioners argue
that this regulation is an exclusive definition of the term
"qualified employer plan" and that such definition only includes
those plans where the employer maintaining the plan is required
to file a Federal income tax return. Thus, petitioners contend,
the term "qualified employer plan" does not include governmental
plans.
We disagree with petitioners. Sec. 54.4981A-1T(a-
3)(c)(2)(i), Temporary Qualified Pension Plan Excise Tax Regs.,
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