Howard E. Clendenen - Page 2

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          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).                          
               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.                                                              

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