Winger's Dep't Store, Inc. v. Commissioner
United States Tax Court
A major portion of the assets of petitioner corporation's pension trust was loaned to petitioner's sole shareholder and trustee of the pension plan, who in turn loaned the funds to petitioner. During the years in question, the loans from the pension plan were unsecured, interest thereon was delinquent, and most of the principal remained outstanding. Retained funds were not profitably invested.
Read the full summary
A major portion of the assets of petitioner corporation's pension trust was loaned to petitioner's sole shareholder and trustee of the pension plan, who in turn loaned the funds to petitioner. During the years in question, the loans from the pension plan were unsecured, interest thereon was delinquent, and most of the principal remained outstanding. Retained funds were not profitably invested. Held: The pension trust did not operate for the exclusive benefit of employees and, hence, fails to be qualified under sec. 401(a), I.R.C. 1954. Enactment of ERISA did not serve to alter the sanction of…
1Opinion of the Court
Sterrett, Judge:
Respondent, in his notice of deficiency dated April 6, 1981, determined deficiencies of $22,704, $25,505, $22,943, and $15,302 in petitioner’s Federal income taxes for the years 1976, 1977, 1978, and 1979, respectively. After concessions by the parties, the issue remaining for decision is whether the trust created under petitioner’s pension plan for employees was a qualified trust within the meaning of section 401(a), I.R.C. 1954, during the taxable years 1977, 1978, and 1979.1
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The stipulation of facts,…
2Cases cited7 opinions
- Ma-Tran Corp. v. CommissionerUnited States Tax Court · 1978
- Time Oil Company v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1958
- Quality Brands, Inc. v. CommissionerUnited States Tax Court · 1976
- Shelby U.S. Distributors, Inc. v. CommissionerUnited States Tax Court · 1979
- Central Motor Co. v. United StatesCourt of Appeals for the Tenth Circuit · 1978
2 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- In Re Edith Bloom, M.D., Debtor. Edith Bloom, M.D. v. Gilbert Robinson, Chapter 7 TrusteeCourt of Appeals for the Ninth Circuit · 1988
- Hofco, Inc. v. National Union Fire Insurance Co. of PittsburghSupreme Court of Iowa · 1992
- Boggs v. CommissionerUnited States Tax Court · 1984
- RES-GA Dawson, LLC v. Rogers (In re Rogers)United States Bankruptcy Court, N.D. Georgia · 2015
- Gallade v. CommissionerUnited States Tax Court · 1996
11 more not listed; retrieve them via the Exa API.