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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
determined.
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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