- 3 -
2. Whether the prohibited transaction was "corrected"
within the meaning of section 4975(b). We hold it was not.
3. Whether petitioner is liable for the additions to tax
determined by respondent under section 6651(a)(1) for failure to
file Federal excise tax returns. We hold he is not.
Unless otherwise noted, section references are to the
applicable versions of the Internal Revenue Code. Rule
references are to the Tax Court Rules of Practice and Procedure.
Dollar amounts are rounded to the nearest dollar.
Background
Most facts are stipulated. The stipulated facts and
exhibits submitted therewith are incorporated herein by this
reference. Petitioner resided in Southampton, New York, when he
petitioned the Court. He is the president and secretary of
Westchester Plastic Surgical Associates, P.C. (Westchester
Associates), his wholly owned corporation.
Westchester Associates adopted a money purchase plan (the
MPP) effective as of January 15, 1972, and it adopted a defined
benefit pension plan (the DBP) effective as of November 1, 1976.
Both plans (collectively, the Plans) received favorable
determination letters from the Internal Revenue Service.
Petitioner has been the only trustee of the trusts (the Trusts)
associated with the Plans, and, as trustee, he has exercised
control over the management and disposition of the Plans' assets.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011