- 2 -
ESOP) failed to meet the requirements of section 401(a)1 for the
plan years beginning after June 30, 1985, and that its related
trust (the trust) was not tax exempt under section 501(a) for
those years.
The issue for decision is whether amounts contributed to the
trust and allocated to one of the ESOP's participants exceed the
limitations in section 415, thereby causing the trust not to
constitute a qualified trust under section 401(a).
Background
Petitioner is a corporation with its principal place of
business located in West Des Moines, Iowa, at the time of the
filing of the petition in this case. It filed its Federal tax
returns for the years in issue with the Internal Revenue Service
Center in Kansas City, Missouri. Petitioner utilizes the accrual
method of accounting with a fiscal year ending June 30 as its
taxable year.
Petitioner was incorporated on July 15, 1983, and its
principal business activity is insurance consulting. It is the
employer and plan administrator with respect to the ESOP, a
defined contribution plan. It established the ESOP and the trust
on September 6, 1983, effective for plan years beginning on or
1 Unless otherwise indicated, all section references are to
the Internal Revenue Code as in effect for the years in issue,
and all Rule references are to the Tax Court Rules of Practice
and Procedure.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011