- 60 -
and Ms. Sobo-–$83,100, $13,214, and $5,000.20 Respondent
determined that the additional income was either constructive
dividend income under section 301 or nonqualified deferred
compensation under section 402(b). As to the latter position,
respondent determined that the petitioning employee/owners of the
Lakewood group were taxable on their shares of the contributions,
when made, because they received in connection with services
property not subject to a substantial risk of forfeiture under
section 83.
VII. The Marlton Plan
Marlton established the Marlton Plan under the NJ VEBA on
December 31, 1993, effective January 1, 1993. Marlton
contributed $100,000 and $120,000 to the plan during 1993 and
1994, respectively, and Dr. Lo deducted those respective amounts
on his 1993 and 1994 Schedules C as employee benefit program
expenses. Marlton also paid a $2,500 VEBA fee in 1993, which Dr.
20 In summary, respondent determined that the disallowed
contributions were attributable to the following persons:
1991 1992 1993
Dr. Hirshkowitz $254,051 $136,678 $211,120
Dr. Desai 122,750 42,056 55,000
Dr. McManus 20,000 17,921 18,186
Dr. Sobo 83,100 13,214 5,000
Dr. Sankhla — — 5,750
Trustee’s fees 1,000 — 1,000
480,901 209,869 296,056
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