- 4 -
time employees included the Bealses, Jeffrie Beals, Jack D.
Richard, and Daryl W. Sable. During MGMT ESOP’s plan year ended
June 30, 1988, MFG had 43 employees, 36 of whom were part time
and 7 of whom were full time. The full-time employees were the
management officers, Jeffrie Beals, Jack D. Richard, and Daryl W.
Sable.
OPINION
Respondent argues that the MGMT ESOP failed to meet the
requirements of: (1) Section 401(a)(3) (a plan must satisfy the
minimum participation standards of section 410), (2) section
401(a)(4) (contributions to and benefits of a plan may not
discriminate in favor of highly compensated employees), and (3)
section 415 (contributions may not exceed a certain percentage of
compensation.) Only the first two grounds were mentioned
specifically in the notice of revocation. Because we agree with
respondent that the MGMT ESOP does not meet the requirements of
section 401(a)(3) for plan years ended June 30, 1987, and
thereafter, we do not consider the other arguments which
respondent has advanced to support his determination.3
Petitioner bears the burden of going forward and the burden of
persuasion in disproving respondent’s determinations. Rule
217(c)(1)(A).
3 On brief, petitioner did not address respondent’s argument
that MFG and MGMT were members of a controlled group.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011