-7-
ending August 31, 1998. That statement records a “stock rollover
DS” on August 24, 1998, consisting of 10,323 shares of J.D.
Edwards & Co. stock valued at $40.50 per share in the aggregate
amount $418,081.50. It is not clear from the record why the
rollover was not booked into petitioner’s account as of August 4,
1998, the date of the receipt issued by Norwest for petitioner’s
J.D. Edwards & Co. stock certificate.
A letter to petitioner dated August 11, 1998, written by a
representative of the ESOP’s trustee, Wells Fargo Bank, states as
follows:
You elected to take a distribution from the J.D.
Edwards & Company (the “Company”) Employee Stock
Ownership Plan (the “ESOP”). In accordance with the
terms of the ESOP and your distribution request form, a
stock certificate in the amount of 10,323 shares. [sic]
You will receive your stock certificate from J.D.
Edwards in the near future.
You elected not to rollover your ESOP account balance.
As a result, the cash balance, consisting of your cash
account and fractional shares, has been withheld for
tax purposes. You will receive a 1099R in January 1999
to reflect your distribution. You may be liable for
additional taxes concerning this distribution.
The above letter is wrong on two important points. First, as
discussed above, by August 11, 1998, the date of the letter,
petitioner had already received the stock certificate for 10,323
shares of J.D. Edwards & Co. stock from the transfer agent.
Second, by the date of the letter, petitioner had already hand-
delivered the stock certificate to Norwest for deposit into his
rollover IRA.
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