-18- 6651(a)(1) addition to tax.10 We sustain respondent's determination. IV. Authority Reorganization Plan No. 4 of 1978 Seeking to avoid liability for a prohibited transaction under section 4975, petitioner contends that the Reorganization Plan No. 4 of 1978 (Reorganization Plan), 3 C.F.R. 332 (1979), 5 U.S.C. app. at 1582 (1994), 92 Stat. 3790 (1978), delegated exclusive authority to the DOL to determined prohibited transaction violations and thus prevents the IRS from separately determining whether a prohibited transaction occurred. According to petitioner, the IRS has authority under section 4975 "generally only in those circumstances where the Department of Labor initially has determined the violation to have occurred or in those circumstances where the Department of Labor has not undertaken a response." ERISA was enacted in 1974, setting up an administrative system for employee benefit plans. ERISA section 2(b), 88 Stat. 829, 833, provides that the policy of this Act [is] to protect interstate commerce and the interests of participants in employee benefit plans and their beneficiaries, by requiring the disclosure and reporting to participants and beneficiaries of financial and other information with respect thereto, by establishing standards of conduct, 10 The only argument that petitioner made was that since no prohibited transaction occurred, there was no requirement to file a Form 5330.Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
Last modified: May 25, 2011