Dallas Dental Lab, Inc. v. Commissioner
United States Tax Court
A qualified profit-sharing plan provided that seasonal employees were not eligible to participate in the plan and defined seasonal employees to include all individuals working less than 5 months in a calendar year. It further provided that a participant did not have to be employed as of the last day of the taxable year in order to participate in the employer's contribution for that year.
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A qualified profit-sharing plan provided that seasonal employees were not eligible to participate in the plan and defined seasonal employees to include all individuals working less than 5 months in a calendar year. It further provided that a participant did not have to be employed as of the last day of the taxable year in order to participate in the employer's contribution for that year. However, an employee whose employment terminated prior to the end of the taxable year and prior to the completion of 1 year of service had no vested interest in the plan, and any allocation of the employer's…
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent determined deficiencies in petitioner’s income tax as follows:
TYE June 30— Deficiency
1972 . $197.72
1973 . 1,140.92
1974 . 717.26
The issue for decision is whether compensation paid to employees whose employment terminated before the end of the taxable year is includable in determining the limitation on the deducti-bility of contributions to a profit-sharing plan under section 404(a)(3)(A).1
This is a fully stipulated case submitted under Rule 122, Tax Court Rules of Practice and Procedure. The facts as stipulated, including those set forth in the attached…
2Cases cited2 opinions
- William M. Bailey Co. v. CommissionerUnited States Tax Court · 1950
- Irwin B. Schwabe Co. v. CommissionerUnited States Tax Court · 1952
3Cited by1 opinion
- Dallas Dental Lab, Inc. v. CommissionerUnited States Tax Court · 1979