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from the IRS office in Washington, D.C., dated March 27, 1987, to
act as a trustee for the FAC IRA trust. This is the same date
reported by Mr. Thomson in FAC's IRA disclosure statement (given to
all prospective investors) in which he claims the IRA trust format
was approved by the IRS.
Respondent produced a letter from his Washington, D.C., office
with the same serial No. (B111447b) and date (March 27, 1987) as
that reported by Mr. Thomson in his disclosure statement. The
letter is addressed to "MFS Financial Service Inc" (MFS) of Boston,
Massachusetts, and states in part:
In our opinion, the amendment to the form of the
prototype trust, custodial account or annuity contract
identified above does not adversely affect its
acceptability under section 408 of the Internal Revenue
Code.
Each individual who adopts this approved plan will be
considered to have a retirement savings program that
satisfies the requirements of Code section 408, provided
they follow the terms of the program and do not engage in
certain transactions specified in Code section 408(e).
Please provide a copy of this letter to each person
affected.
The Commissioner's letter, despite Mr. Thomson's belief to the
contrary, does not indicate that he was approved by the
Commissioner to serve as a trustee for the FAC IRA. The letter
refers to an amendment to the form of a trust, see Rev. Proc. 87-
50, 1987-2 C.B. 647, 648, not to the approval of a trustee to serve
in that capacity. Moreover, the letter was addressed to MFS of
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