- 3 -
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.
Page: 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