-12-
651 (1991); sec. 53.4941(a)-1(a)(3), Foundation Excise Tax Regs.
Further, those who participate in a section 4975 prohibited
transaction are liable for the excise tax notwithstanding that
they may have acted innocently or in good faith. Rutland v.
Commissioner, 89 T.C. 1137, 1146 (1987). In signing the
Agreement and Assignment of Accounts Receivable as a corporate
officer, petitioner, along with Mr. Cohen, implemented the
transfer of accounts receivable to the Plan. In doing this, we
find that petitioner, a disqualified person, participated in the
prohibited transaction, which results in petitioner's being
liable for the excise tax of section 4975(a).
Section 4975(a) imposes an excise tax of 5 percent of the
"amount involved" with respect to the prohibited transaction for
each year during the "taxable period". Under section 4975(f)(2),
the taxable period is the period beginning on the date of the
prohibited transaction and ending on the earlier of (A) the date
of mailing a notice of deficiency, (B) the date on which the
section 4975(a) tax is assessed, or (C) the date on which
correction of the prohibited transaction is completed.
Therefore, the taxable period is May 31, 1988 (date of the
prohibited transaction), to August 18, 1994 (date of mailing the
notice of deficiency).
The amount involved is the greater of the amount of money
and the fair market value of the property given or the amount of
money and the fair market value of the property received. Sec.
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