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Held, further, P is not liable for the additions
to tax determined by R under sec. 6651(a)(1), I.R.C.,
for failure to file excise tax returns for 1990 through
1996; as of the respective due dates for these returns,
a reasonable person could have concluded that the
filing of an excise tax return was not required because
the transfer was not a prohibited transaction, or, if
it was, that it had been corrected.
Andrew I. Panken and Robert A. DeVellis, for petitioner.
Catherine R. Chastanet, for respondent.
MEMORANDUM OPINION
LARO, Judge: The parties submitted this case to the Court
without trial. See Rule 122. Petitioner petitioned the Court to
redetermine respondent's determination of the following
deficiencies in Federal excise tax and additions thereto:
First-tier Second-tier
(initial) deficiency (additional) deficiency Additions to Tax
Year Sec. 4975(a) Sec. 4975(b) Sec. 6651(a)(1)
1990 $9,584 --- $2,156
1991 57,500 --- 12,398
1992 57,500 --- 12,398
1993 57,500 --- 12,398
1994 57,500 --- 12,398
1995 57,500 --- 12,398
1996 57,500 $1,150,000 12,398
We decide the following issues:
1. Whether petitioner's transfer of property to his pension
plan was a prohibited transaction under section 4975(a). We hold
it was.
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