Wells Fargo & Company (f.k.a. Norwest Corporation) and Subsidiaries - Page 44




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            contributions to a black lung benefit trust20 is the greater of “(i)                        
            the average remaining working life of miners who are present                                
            employees of the taxpayer, or (ii) 10 taxable years.”  Sec.                                 
            192(c)(1)(B).  We conclude, therefore, that the amortization rules                          
            applicable to pensions do not apply to the computation of the                               
            section 419A(c)(2) reserve.                                                                 
                  In Gen. Signal Corp. v. Commissioner, 103 T.C. at 240, in                             
            light of the taxpayer’s assertions that the phrase “reserve funded”                         
            does not have a commonly understood meaning, we assumed arguendo                            
            that the phrase was ambiguous and considered the legislative                                
            history.  We shall do likewise in this case.                                                
                  In consulting the legislative history of section 419A, we are                         
            mindful that the relevant portion of the committee report states:                           
                        Prefunding of life insurance, death benefits, or                                
                  medical benefits for retirees.--The qualified asset                                   
                  account limits allow amounts reasonably necessary to                                  
                  accumulate reserves under a welfare benefit plan so that                              

                  20    Sec. 192(b) limits contributions to a black lung benefit                        
            trust as follows:                                                                           
                        SEC. 192(b).  Limitation.--The maximum amount of the                            
                  deduction allowed by subsection (a) for any taxpayer for                              
                  any taxable year shall not exceed the greater of--                                    
                              (1) the amount necessary to fund (with level                              
                        funding) the remaining unfunded liability of the                                
                        taxpayer for black lung claims filed (or expected                               
                        to be filed) by (or with respect to) past or                                    
                        present employees of the taxpayer, or                                           
                              (2) the aggregate amount necessary to increase                            
                        each trust described in section 501(c)(21) to the                               
                        amount required to pay all amounts payable out of                               
                        such trust for the taxable year.                                                




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