Michael Morrissey - Page 11

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            94-95 (1973), 1974-3 C.B. (Supp.) 80, 173-174; see also                   
            Greenlee v. Commissioner, T.C. Memo. 1996-378.                            
            Disqualification penalized employee/plan participants in that             
            they were denied favorable tax consequences such as deferral of           
            taxation.  S. Rept. 93-383, supra at 94, 1974-3 C.B. (Supp.) at           
            173; see also Hamlin Dev. Co. v. Commissioner, T.C. Memo.                 
            1993-89, for a discussion of the favorable tax consequences               
            that flow from a pension plan.  The Congress' intent in                   
            enacting pension plan legislation has primarily been to protect           
            participants and their beneficiaries by ensuring that plan                
            assets are held for their exclusive benefit.  H. Conf. Rept.              
            93-1280, at 303 (1974), 1974-3 C.B. 415, 464.                             
                 Petitioner does not contest respondent's determination               
            that petitioner was a disqualified person under section 4975 on           
            the date of the transfer.  He was by virtue of his status as              
            the Plans' trustee.  See sec. 4975(e)(2)(A) and (3)(A).  Nor              
            does petitioner contest respondent's determination that each of           
            the Trusts was a "plan" under section 4975(e)(1).  Petitioner's           
            dispute with respondent begins with petitioner's assertion that           
            he is excepted from the prohibited transaction rules because,             
            he contends, he was the only beneficiary of the Plans.                    
                 We disagree with petitioner that he is excepted from the             
            prohibited transaction rules.  He was not the MPP's only                  
            beneficiary when he transferred the real estate to it.  Even if           





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