- 17 -
Golden Belt Tel. Association, Inc. v. Commissioner, supra;
Transco Exploration Co. v. Commissioner, 95 T.C. 373, 386
(1990), affd. 949 F.2d 837 (5th Cir. 1992); cf. Follender
v. Commissioner, 89 T.C. 943, 958 (1987).
Moreover, the TAM is clearly distinguishable from the
instant case. The taxpayer in the TAM was a participant
in a qualified profit-sharing plan who received a loan on
December 18, 1986, from the trust that formed a part of the
plan. The Commissioner treated the loan as a distribution
under section 72(p)(1) based upon a determination that the
terms of the note violated the level amortization
requirement of section 72(p)(2)(C). The taxpayer argued
that the loan was not subject to the level amortization
requirement of the 1986 Act because it had been made prior
to December 31, 1986, the effective date of the 1986 Act.
Respondent rejected the taxpayer's argument and determined
that the 1986 Act was applicable because the loan had been
extended after the effective date. Significantly, the
Commissioner did not rely on the fact that the trustee of
the trust had executed two signed statements after
December 31, 1986, purporting to extend the repayment
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011