- 6 - FAC Individual Retirement Account Donald L. Thomson was one of several individuals who actively sold bus stop shelter units as part of MDA's bus stop shelter program. Mr. Thomson was a financial planner and accountant who did business as Financial & Accounting Consultants, Inc. (FAC). Despite its name, FAC was a sole proprietorship and not a corporation. During the late 1980's, Mr. Thomson sought approval from the Internal Revenue Service (IRS) to become a trustee of an individual retirement account (IRA) trust that ultimately would make an investment in MDA's bus stop shelter program (the FAC IRA). Mr. Thomson prepared a FAC IRA disclosure statement which was delivered to all prospective investors in the FAC IRA. The disclosure statement stated: The Trust is established with the intent that it qualify as an "Individual Retirement Account" under Section 408(a) of the Code, and the provisions hereof shall be construed in accordance with such intent. * * * The Trust was last approved as an acceptable form of prototype trust under Section 408(a) of the Internal Revenue Code by the National Office of the Internal Revenue Service (IRS) in Opinion Letter Serial No. B111447b dated March 27, 1987. Upon opening the FAC IRA, the investor executed an IRA adoption agreement. The adoption agreement authorized FAC to invest the IRA contributions in MDA's bus stop shelter program and to open aPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011