Howard E. Clendenen - Page 6




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          Respondent and the corporation signed the corporation’s                     
          stipulation to be bound, and respondent and Mr. Clendenen signed            
          Mr. Clendenen’s stipulation to be bound.                                    
               On September 3, 1998, the Court published its opinion,                 
          Howard E. Clendenen, Inc. v. Commissioner, T.C. Memo. 1998-318              
          (docket No. 18155-96R) (the declaratory judgment), affd. 207 F.3d           
          1071 (8th Cir. 2000).  We held that the trust was not a qualified           
          trust under section 401(a) beginning with the plan year 1986                
          because the annual additions exceeded the limitations of section            
          415(c) when we found that the elective deferrals were employer              
          contributions and that those amounts and the amounts paid by the            
          corporation to Mr. Clendenen as an independent contractor were              
          not includable in compensation under section 415.  We stated:               
               the annual additions allocated to Mr. Clendenen during each            
               of the plan years 1986, 1987, 1989, 1990, and 1991, exceed             
               the section 415 limits.  Petitioner has not argued or                  
               established that any corrective measures were taken to                 
               reduce these additions.  See sec. 1.415-6(b)(6), Income Tax            
               Regs.                                                                  
          The Court of Appeals for the Eighth Circuit affirmed our opinion.           
          Howard E. Clendenen, Inc. v. Commissioner, 207 F.3d 1071 (8th               
          Cir. 2000), affg. T.C. Memo. 1998-318.                                      
               On March 5, 2002, respondent filed a motion for entry of               
          decision in each of these cases, moving that the Court enter a              
          decision pursuant to the stipulations filed by the parties.2                


               2  Respondent did not file a motion for entry of decision in           
                                                             (continued...)           





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