Legal Opinion

Aero Rental v. Commissioner

United States Tax Court

Decided May 29, 1975No. Docket No. 4231-72PublishedCited by 96 opinions

1. In 1969, Aero, which had 11 employees, established a stock bonus plan for its employees. At a special meeting, the plan was read and discussed with them. No written explanation of the plan was distributed, but they were told they could look at the plan at any time.

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1. In 1969, Aero, which had 11 employees, established a stock bonus plan for its employees. At a special meeting, the plan was read and discussed with them. No written explanation of the plan was distributed, but they were told they could look at the plan at any time. Held, under the circumstances, the plan was adequately communicated to the employees to satisfy the requirements of sec. 1.401-1(a)(2), Income Tax Regs. 2. In 1970, Aero requested a determination that the plan qualified under sec. 401, I.R.C. 1954. The IRS agents informally indicated that the plan did not qualify because of its…

1Opinion of the Court

Simpson, Judge:

The Commissioner determined the following deficiencies in the petitioner’s Federal corporate income taxes:

Year Deficiency

1968_ $3,362.96

1969_ 15,341.11

1970_ 15,541.76

Some of the issues in the case have been settled, and one issue is to be tried subsequently, if necessary. The issues to be decided at this time are: (1) Whether the petitioner’s stock bonus plan was communicated to its employees during 1969; and (2) whether under the circumstances, the plan qualified under section 401 of the Internal Revenue Code of 19541 for the years 1969 and 1970.

FINDINGS OF FACT

Some of the…

2Cases cited3 opinions

  1. United States v. DavisSupreme Court of the United States · 1970
  2. Theatre Concessions, Inc. v. CommissionerUnited States Tax Court · 1958
  3. Nash v. CommissionerUnited States Tax Court · 1958

3Cited by96 opinions

  1. Murphy v. Comm'rUnited States Tax Court · 2005
  2. Woods v. CommissionerUnited States Tax Court · 1989
  3. Wing v. CommissionerUnited States Tax Court · 1983
  4. Sundstrand Corp. v. CommissionerUnited States Tax Court · 1991
  5. Haag v. CommissionerUnited States Tax Court · 1987

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