Neil M. Baizer - Page 21

               As a result, Reorganization Plan section 102(a) provides the           
          DOL with "all authority" for "regulations, rulings, opinions, and           
          exemptions under section 4975" subject to specified exceptions,             
          including the exception that Reorganization Plan section 102(a)             
          does not grant the DOL authority over section 4975(a) and (b).              
          The IRS retains control over the enforcement of the section 4975            
          excise tax.  Reorg. Plan secs. 102(a), 105.  Pursuant to its                
          authority to enforce the excise taxes of section 4975(a) and (b),           
          the IRS made a determination that petitioner participated in a              
          transaction prohibited under section 4975(c)(1).                            
               Petitioner contends that the DOL has exclusive authority to            
          make the determination whether a transaction is prohibited under            
          section 4975(c)(1).12  In enacting section 4975(c)(1), Congress             
          specifically enumerated six categories of prohibited                        
          transactions.  Leib v. Commissioner, 88 T.C. at 1478.  This                 
          provides a detailed definition of a prohibited transaction, and             
          we are satisfied that the IRS, in the exercise of its power to              
          enforce the excise tax, had authority to determine that                     
          petitioner engaged in such a transaction.                                   

               12  In making his argument, petitioner relies on ERISA sec.            
          502(i), 29 U.S.C. sec. 1132(i) (1988), which provides that the              
          Secretary of Labor may assess a civil penalty against a party in            
          interest.   While this clearly gives the DOL authority over the             
          civil penalties for violation of the rules in ERISA against                 
          prohibited transactions, sec. 4975 deals with an excise tax, not            
          a civil penalty.                                                            

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