Robert C. Geib - Page 3




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          I.   Loans                                                                    
               Petitioner took unsecured loans, each bearing 12 percent                 
          annual interest and a due date of January 1, 1992, from the plan              
          as follows:                                                                   
                         Date                      Amount                               
                    Mar. 1, 1988                   $62,000                              
                    Mar. 7, 1988                   20,000                               
                    Apr. 16, 1990                  10,000                               
                    Apr. 19, 1990                  100,000                              
                    Apr. 20, 1990                  6,000                                
                    Apr. 30, 1990                  6,000                                
                    May 19, 1990                   6,500                                
          The plan allowed loans to participants but limited the amount of              
          any loan, required a Qualified Waiver of Spouse from the                      
          participant taking the loan, and stipulated that the loan be                  
          secured by the participant’s entire interest in the plan’s trust              
          fund.  Petitioner’s loans were made in excess of the plan’s                   
          amount limitations and without a Qualified Waiver of Spouse.                  
          Petitioner partially repaid the May 19, 1990, loan, but did not               
          make any other repayments or file Form 5330, Return of Excise                 
          Taxes Related to Employee Benefit Plans.                                      
          II. Other Cases                                                               
               On November 2, 1990, the company filed a voluntary petition              
          for reorganization under chapter 11 of the Bankruptcy Code (the               
          bankruptcy case).  In the bankruptcy case, the Commissioner                   
          asserted a section 4971 deficiency against the company for                    








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