-13- 4975(f)(4). Since the prohibited transaction was the assignment of the accounts receivable by the Corporation to the Plan, the amount involved is the fair market value of the accounts receivable on May 31, 1988. In the notice of deficiency, respondent determined the fair market value of the accounts receivable assigned to the Plan to be $224,298. Because petitioner has not provided any contrary evidence, respondent's determination of the fair market value of the receivables will stand. Therefore, petitioner is liable for the first-tier tax. We sustain respondent's determination. II. Section 4975(b) Section 4975(b) imposes a second-tier tax equal to 100 percent of the amount involved where the prohibited transaction is not corrected within the taxable period. Section 4975(f)(5) provides that The terms "correction" and "correct" mean, with respect to a prohibited transaction, undoing the transaction to the extent possible, but in any case placing the plan in a financial position not worse than that in which it would be if the disqualified person were acting under the highest fiduciary standards. In this case, the taxable period began on the date that the prohibited transaction occurred, May 31, 1988, and ended on thePage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
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