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We shall deal with such matters under section 4975(c)(1)(E)
when confronted with a record in which we must decide the matters
in order to resolve the case.
We hold, for respondent, that each of the loans (supra table
1) constituted a use of the Plan’s assets for petitioner’s
benefit, in violation of section 4975(c)(1)(D).
II. Failure To File Tax Returns
In the portion of his brief dealing with the additions to
tax for failure to file tax returns, petitioner contends that--
Nothing in this case indicates that there was abuse of
any kind to the Plan or its participants, nor was there
any economic benefit to the Petitioner himself. The
Petitioner has significant experience in administering
and managing benefit plans, and substantial experience
in the asset management of plans. When a taxpayer
cannot rely upon the statutory authority itself to
support his actions, then the taxing system becomes
sheer folly. * * * As the record will show, the
Petitioner totally relied upon the statutory integrity
of the transaction, and to assert there was any abuse
or that any assessment of penalties is warranted is an
outrage.
Respondent maintains: (1) Petitioner was obligated to file
tax returns for the section 4975(a) taxes; (2) petitioner failed
to do so; (3) petitioner did not have reasonable cause for his
failure to file tax returns; and (4) such failures result in
additions to tax under section 6651(a)(1).
We agree with respondent.
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