Neil M. Baizer - Page 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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