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Agency owned by petitioner's wife is attributed to petitioner for
purposes of section 4975(e)(2)(G). Since petitioner and his wife
owned 100 percent of the Garrahan Agency, and since petitioner is
a disqualified person under section 4975(e)(2)(A), the Garrahan
Agency is a disqualified person under section 4975(e)(2)(G).
3. Conclusion
The Garrahan Agency is a disqualified person under section
4975(e)(2), and thus it and petitioner are jointly and severally
liable for the 5-percent excise tax imposed by section 4975(a).5
D. Whether Petitioners Are Liable for Additions to Tax Under
Section 6651(a)(1)
Disqualified persons liable for the tax under section
4975(a) must file an annual return on Form 5330 for each
prohibited transaction. Sec. 6011; sec. 54.6011-1(b), Pension
Excise Tax Regs. Neither petitioner filed Forms 5330 for the
years at issue. Petitioners' failure to file Forms 5330 renders
each petitioner liable for the addition to tax under section
6651. See Janpol v. Commissioner, 102 T.C. 499, 500 (1994).
Petitioners do not contend that they are not liable for the
additions to tax under section 6651(a)(1). We treat this as
petitioners' concession of this issue. See Rothstein v.
Commissioner, 90 T.C. 488, 497 (1988). Respondent concedes that
5 Petitioner stated at trial that he and the Garrahan Agency
had paid $345,000 to settle a civil suit brought in the U.S.
District Court in Boston against petitioners and others by the
Department of Labor, FUH, and the FUH plan. Petitioners did not
argue in their posttrial brief that this affects their liability
for tax under sec. 4975(a).
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