Neil M. Baizer - Page 17

          of his accrued benefits.  Even if the participants had received             
          their full benefits, this would not have "undone" the prohibited            
          transaction as intended by the statute.                                     
               We find that petitioner has not proven that the transaction            
          was corrected within the meaning of section 4975(f)(5).  We hold            
          that the second-tier tax under section 4975(b) was properly                 
          III. Additions to Tax:  Section 6651(a)(1)                                  
               Next, we turn to the additions to tax under section                    
          6651(a)(1).  Section 6651(a)(1) imposes a tax for the failure to            
          file a required return unless it is shown that the failure is due           
          to reasonable cause and not due to willful neglect.                         
               Under section 6011 and section 54.6011-1(b), Pension Excise            
          Tax Regs., every disqualified person liable for the tax imposed             
          under section 4975(a) with respect to a prohibited transaction              
          shall file an annual return on Form 5330 for each taxable year in           
          the taxable period.9  See Janpol v. Commissioner, 102 T.C. 499,             
          500 (1994).  It is undisputed that no one ever filed with the IRS           
          a Form 5330 with respect to the transfer of the Corporation's               
          accounts receivable to the Plan.  Petitioner has not presented              
          any evidence or argument on brief regarding the section                     

               9  In this case, the taxable period is the period commencing           
          May 31, 1988, and ending Aug. 18, 1994.                                     

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