- 4 - Petitioner was incorporated on August 9, 1985, and its principal business activity is real estate sales. It is the employer and plan administrator with respect to the ESOP, a defined contribution plan. Petitioner established the ESOP and the trust as of August 12, 1985, effective for plan years beginning on and after August 12, 1985. The plan years and limitation years of the ESOP and the trust are the fiscal years ending July 31. Petitioner amended and restated the plan document on November 7, 1989, effective August 1, 1989. On August 20, 1990, respondent issued a favorable determination letter to petitioner stating that the ESOP, as amended and restated, was in form qualified under section 401(a) and consequently the trust was entitled to tax exempt status under section 501(a). This determination letter applied to plan year(s) beginning after July 31, 1989. The ESOP contains a salary reduction cash or deferred arrangement feature, under which an ESOP participant is permitted to reduce his cash compensation or to forgo an increase in cash compensation conditioned upon the employer's making a pretax contribution in the same amount to the ESOP to the participant's account. Apart from the 10 shares of petitioner's stock issued to Robert and Charlene Peers on August 9, 1985, the ESOP's trust is and has been the sole shareholder of petitioner since itsPage: 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