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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 a
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Last modified: May 25, 2011