Roblene, Inc. - Page 3




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               We hold that the commissions paid to Robert and Charlene               
          Peers as independent contractors are not includable in                      
          "participant's compensation" for purposes of the section 415                
          limitations.  Furthermore, we hold that the elective salary                 
          deferrals are employer contributions and as such are not included           
          in "participant's compensation" for section 415 limitation                  
          purposes.  Consequently, we hold that the ESOP failed to meet the           
          requirements of section 401(a) for the plan years beginning after           
          July 31, 1986, and that the related trust is not a qualified                
          trust under section 401(a) for the plan years beginning after               
          July 31, 1986.                                                              
                                     Background                                       
               Petitioner is an Iowa corporation with its principal place             
          of business located in Des Moines, Iowa, at the time of the                 
          filing of the petition in this case.  It filed its Federal tax              
          returns for the years in issue with the Internal Revenue Service            
          Center in Kansas City, Missouri.  Petitioner maintains its tax              
          records on the accrual method of accounting with a fiscal year              
          ending July 31 as its taxable year.                                         


               2(...continued)                                                        
               (a) General Rule.--except as otherwise provided in this                
               section, the amount of any tax imposed by this title shall             
               be assessed within 3 years after the return was                        
               filed * * * and no proceeding in court without                         
               assessment for the collection of such tax shall be begun               
               after the expiration of such period.                                   




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