Westchester Plastic Surgical Associates, P.C. - Page 21




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          of Form 5500 reports the total present value of vested benefits             
          for participants as of the end of the plan year as $335,384.                
          Moreover, the Form 5500 reports that petitioner owes $231,796 in            
          contributions which are more than 3 months overdue.  Thus, the              
          contributions petitioner owes to the Defined Benefit Plan                   
          represent more than two-thirds of the participants' vested                  
          benefits.  For the plan year ended October 31, 1990, the Schedule           
          B of Form 5500 reports the total present value of vested benefits           
          for participants as of the end of the plan year as $341,583.   In           
          addition, the Form 5500 reports $257,639 in contributions that              
          petitioner owes the trust which are more than 3 months overdue.             
          Thus, the contributions petitioner owes to the Defined Benefit              
          Plan represent 75 percent of the participants' vested benefits.             
               For the plan years ended October 31, 1988, 1989, and 1990,             
          petitioner owed contributions to the Defined Benefit Plan of                
          $188,983, $231,796, and $257,639, respectively.  This pattern of            
          increasing overdue contributions each plan year shows that                  
          petitioner was consistently not making contributions to the                 
          Defined Benefit Plan even though the participants' vested                   
          benefits were increasing.  Moreover, on this record petitioner              
          has not shown that it refrained from taking deductions for                  
          contributions to the Defined Benefit Plan which it was not                  
          making.  The problem is thus exacerbated.                                   







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