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income for income tax purposes as well. Indeed, in H. Rept. 101-
881, 51 (1990) it is stated that "assets that revert to the
employer upon such termination are includible in the gross income
of the employer and are subject to an excise tax (sec. 4980 of
the Code)." (Emphasis added.) Certainly, it would seem highly
unlikely that Congress could have intended a mere 10 percent
excise tax to replace the tax on income at a substantially higher
rate, and there is nothing in the legislative history relating to
the increase in the excise rate from 10 to 15 and then to 20
percent to suggest that the intention of Congress changed.
We express no opinion here as to petitioner corporation's
liability for the excise. And since we have concluded that there
is no deficiency in income tax, we need not consider whether
there is any liability for the section 6661(a) addition to tax.
Decision will be entered
for petitioner.
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