Neil M. Baizer - Page 18

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          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.                                                                




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