-18-
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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