Liberty Machine Works, Inc. v. Commissioner
United States Tax Court
Petitioner's hourly union employees were covered by a union-negotiated pension plan. Petitioner established a profit-sharing plan for its salaried and clerical employees which covered four employees, including its sole shareholder and officer and its plant superintendent. Held, the profit-sharing plan, standing alone, does not qualify under sec. 401(a), I.R.C. 1954, because it does not satisfy the coverage requirements of that section.
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Petitioner's hourly union employees were covered by a union-negotiated pension plan. Petitioner established a profit-sharing plan for its salaried and clerical employees which covered four employees, including its sole shareholder and officer and its plant superintendent. Held, the profit-sharing plan, standing alone, does not qualify under sec. 401(a), I.R.C. 1954, because it does not satisfy the coverage requirements of that section. Held, further, considering the combination of the profit-sharing plan and the pension plan as one plan under sec. 401(a)(3), I.R.C. 1954, the plan is not…
1Opinion of the Court
Goffe, Judge:
The Commissioner determined deficiencies in petitioner’s Federal income taxes for the taxable years ended March 31, 1968, and March 31, 1969, in the respective amounts of $6,225.15 and $7,031.38. The sole issue for decision is whether petitioner’s contributions to a trust for its profit-sharing plan were deductible under section 404(a) (3) or 404(a) (4) of the Internal Eevenue Code of 1954.1
FINDINGS OF FACT
Some of the facts are stipulated. The stipulation of facts and exhibits are incorporated by reference.
Petitioner is a Missouri corporation which was incorporated in 1947. It is…
2Cases cited7 opinions
- Ed & Jim Fleitz, Inc. v. CommissionerUnited States Tax Court · 1968
- Loevsky v. CommissionerUnited States Tax Court · 1971
- United States v. George Howard Hall and Ruth HallCourt of Appeals for the Eighth Circuit · 1968
- Bernard McMenamy Contractor, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1971
- Bernard McMenamy, Contractor, Inc. v. CommissionerUnited States Tax Court · 1970
2 more not listed; retrieve them via the Exa API.
3Cited by29 opinions
- Lansons, Inc. v. CommissionerUnited States Tax Court · 1978
- Quality Brands, Inc. v. CommissionerUnited States Tax Court · 1976
- Tamko Asphalt Products, Inc. v. CommissionerUnited States Tax Court · 1979
- Babst Services, Inc. v. CommissionerUnited States Tax Court · 1976
- Pulver Roofing Co. v. CommissionerUnited States Tax Court · 1978
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