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year is an amount which the plan administrator could have, as of
the beginning of such plan year, reasonably anticipated to be
made by employers with respect to covered services performed
during such plan year.
Petitioner consulted with an accounting firm, Ernst &
Whinney, about accelerating deductions for contributions to the
CBA Plans made after the end of a tax year and before the due
date of the tax return for that year (herein for convenience
referred to as grace period contributions). The parties
stipulated that Ernst & Whinney marketed this type of
acceleration to certain clients that were making required
contributions to multiemployer defined benefit pension plans
during this period.
Petitioner was never notified by any plan representative
that the statutory deduction limit was exceeded with respect to
any plan for any relevant period. Petitioner did not notify any
plan representative that the monthly contributions calculated
with reference to covered services performed after January 31,
1988, were to be applied to months ending on or before January
31, 1988.
II. The Vacation Pay Deductions
Petitioner provides many of its approximately 130,000
employees with job-related benefits, including vacation pay and
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