Martin Fireproofing Profit-Sharing Plan & Trust v. Commissioner
United States Tax Court
P is a trust forming part of a profit-sharing plan. Allocations to a plan participant's account for 1976, 1977, and 1979 through 1981 exceeded the sec. 415(c)(1), I.R.C. 1954, limit. Held, R did not abuse his discretion in not permitting a retroactive correction of sec. 415 violations. Held, further, because of the excess allocations, P became disqualified and lost its exempt status until 1984, when remedial action became effective.
Read the full summary
P is a trust forming part of a profit-sharing plan. Allocations to a plan participant's account for 1976, 1977, and 1979 through 1981 exceeded the sec. 415(c)(1), I.R.C. 1954, limit. Held, R did not abuse his discretion in not permitting a retroactive correction of sec. 415 violations. Held, further, because of the excess allocations, P became disqualified and lost its exempt status until 1984, when remedial action became effective. Held, further, the statute of limitations bars assessment for 1980, but not for 1979.
1Opinion of the Court
OPINION
WELLS, Judge:
Respondent determined the following deficiencies and additions to tax against petitioner:
Year Deficiency Sec. 6651(a)(1) 1 addition
1979 $10,465.83 $2,616.46
1980 21,265.76 5,316.44
1981 19,433.96 4,858.49
1982 3,841.48 960.37
1983 44,469.37 11,117.34
Respondent has conceded the additions. Thus, the instant case presents the following remaining issues: (1) Whether respondent should have permitted petitioner, a trust forming part of a profit-sharing plan, to retroactively correct violations of section 415 by reallocating excess contributions, (2) whether excess contributions made…
2Cases cited19 opinions
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Crane v. CommissionerSupreme Court of the United States · 1947
- Beard v. Comm'rUnited States Tax Court · 1984
- Commissioner v. Lane-Wells Co.Supreme Court of the United States · 1944
- Zellerbach Paper Co. v. HelveringSupreme Court of the United States · 1934
14 more not listed; retrieve them via the Exa API.
3Cited by28 opinions
- Williams v. CommissionerUnited States Tax Court · 2000
- Harris v. CommissionerUnited States Tax Court · 1992
- Citrus Valley Estates v. CommissionerUnited States Tax Court · 1992
- Halliburton Co. v. CommissionerUnited States Tax Court · 1992
- Paschall v. CommissionerUnited States Tax Court · 2011
23 more not listed; retrieve them via the Exa API.