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failure to satisfy the minimum funding standard pursuant to
section 412.
In 1994, petitioner was indicted and charged with seven
counts of bankruptcy fraud for unauthorized postpetition (i.e.,
after November 2, 1990) transfers of company funds and one count
of embezzling, on April 19, 1991, approximately $100,000 from the
plan (the criminal case). On August 22, 1995, petitioner entered
into a plea agreement in which he pleaded guilty to three counts
of bankruptcy fraud and the embezzlement charge.
Discussion
Respondent determined that the loans were prohibited
transactions pursuant to section 4975. Petitioner contends that
respondent is precluded, pursuant to the Double Jeopardy Clause,
see U.S. Const. amend. V, from assessing the deficiencies and
additions.
I. Excise Taxes
Section 4975 imposes two tiers of excise taxes on a
prohibited transaction. The first tier is 5 percent of the
amount involved in a prohibited transaction for each year, or
part thereof, in the taxable period. See sec. 4975(a). If the
first-tier excise tax applies and the transaction is not
corrected within the taxable period, a 100-percent second-tier
tax is imposed on the amount involved. See sec. 4975(b).
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