Neil M. Baizer - Page 10

          exchange" to include the transfer of property in satisfaction of            
          such a monetary obligation.  Id. at 158-159.  Furthermore, the              
          Court noted that section 4975(c)(1)(A) not only barred a "sale or           
          exchange" but also "any direct or indirect * * * sale or                    
          exchange."  Id. at 159.  The Court concluded that "The                      
          contribution of property in satisfaction of a funding obligation            
          is at least both an indirect type of sale and a form of exchange,           
          since the property is exchanged for diminution of the employer's            
          funding obligation."  Id.                                                   
               In this case the record shows that the Corporation was                 
          indebted to the Plan.  For the plan year ended January 31, 1984,            
          the Corporation was required to contribute $186,200 to the Plan             
          to satisfy the minimum funding standard of section 412.  The                
          Corporation created two fictitious notes receivable from "H.                
          Bogart" and then claimed a deduction of $186,200 on its corporate           
          income tax return for its taxable year ended January 31, 1985.              
          However, as of January 31, 1988, the Corporation had not made the           
          1984 mandatory contribution.  Later in 1988, the Corporation                
          assigned $273,558 of its accounts receivable for the purpose of             
          satisfying the Corporation's funding obligation under section               
          412.  The assignment was implemented through two documents,                 
          signed by both Mr. Cohen and petitioner, dated May 31, 1988:                
          "Agreement" and "Assignment of Accounts Receivable".  Through the           
          assignment of accounts receivable, the Corporation sought to be             
          relieved of its funding obligation to the Plan.                             

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