Neil M. Baizer - Page 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              
               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 the             

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