John F. Romann - Page 18

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          Paragraph (b)(5) of the regulation supersedes paragraph (b)(1),             
          (2), (3), and (4) in the case of plan terminations.                         
               The MEBA Plan instrument states in its preamble that it is a           
          collectively bargained plan.  All the parties herein state that             
          it is a collectively bargained plan.  We have so found.                     
          Accordingly, the determination of whether petitioner has                    
          qualified as an interested party under Treasury Regulations is to           
          be made under section 1.7476-1(b)(4), Income Tax Regs.7  Under              
          this provision, “present employees covered by a collective-                 
          bargaining agreement pursuant to which the plan is maintained               
          shall be interested parties.”                                               
               The regulation does not define the term “present employee”.            
          However, the meaning of this term may be gleaned from the                   
          regulation’s use of other terms.  In particular, (1) paragraph              
          (b)(5) of the regulation (discussed infra) distinguishes between            
          “present employees”, “former employees”, and “beneficiaries of              
          deceased former employees”; (2) paragraph (c)(1) of the                     
          regulation distinguishes between “present employee” and “former             
          employee”; and (3) paragraph (c) of section 1.7476-2, Income Tax            
          Regs., provides one set of notification rules for present                   
          employees in subparagraph (1) thereof and a different set of                



               7    The question of whether sec. 1.7476-1(b)(5), Income Tax           
          Regs., supersedes paragraph (b)(4) of the regulation is dealt               
          with infra.                                                                 





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