T.C. Memo. 1998-440
UNITED STATES TAX COURT
FRANK GANT AND ROBERTA GANT, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 17090-95. Filed December 15, 1998.
G was the president, the sole shareholder, and a highly
compensated employee of O. O sponsored a defined benefit
plan and defined contribution plan for its employees which
were both qualified within the meaning of sec. 401(a),
I.R.C. Ps alleged that O terminated both plans in the June
30, 1988, plan year when it adopted a resolution to
terminate the plans immediately and distributed individual
annuity contracts to plan participants. Subsequently, R
disqualified both plans for the plan year ended June 30,
1991, for, among other reasons, their failure to meet the
participation requirements of sec. 401(a)(26), I.R.C. R
determined deficiencies in Ps' Federal income taxes for
their 1991, 1992, and 1993 taxable years due to their
failure to include in gross income G's vested accrued
benefit in the Pension Plan in 1991, G's account balance in
the Profit Plan in 1991, and accrued benefits under both
Plans in 1992 and 1993.
1. Held, for purposes of the Internal Revenue Code,
strict adherence to the requirements of ERISA sec. 4041 are
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