Medina v. Commissioner
United States Tax Court
H and W, who were both disqualified persons within the meaning of sec. 4975, I.R.C., borrowed $ 340,000 from the qualified pension plan of H's wholly owned corporation.
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H and W, who were both disqualified persons within the meaning of sec. 4975, I.R.C., borrowed $ 340,000 from the qualified pension plan of H's wholly owned corporation. H and W did not make any payments of interest or principal relating to the loan and did not file excise tax returns. 1. HELD: Sec. 4975, I.R.C., applies to a loan, even though such loan, pursuant to sec. 72(p), I.R.C., was treated as a distribution. 2. HELD, FURTHER, H and W did not correct, within the meaning of sec. 4975, I.R.C., the prohibited transaction and, pursuant to sec. 4975(a) and (b), I.R.C., are liable for both…
1Opinion of the Court
OPINION
Foley, Judge:
By notices dated June 25, 1997, respondent determined deficiencies in, and an addition to, petitioners’ Federal excise taxes as follows:
Gideon L. Medina
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Corazón P. Medina
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Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. The issues for decision are as follows:(1) Does section 4975 apply to a loan even though such loan, pursuant to section 72(p), was treated as a distribution? We hold that it does.(2) Did…
2Cases cited6 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- United States v. LockeSupreme Court of the United States · 1985
- Thoburn v. CommissionerUnited States Tax Court · 1990
- Phillips Petroleum Co. v. CommissionerUnited States Tax Court · 1993
- Janpol v. CommissionerUnited States Tax Court · 1993
1 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Gideon L. and Corazon P. Medina v. CommissionerUnited States Tax Court · 1999
- Medina v. CommissionerUnited States Tax Court · 1999
- Zacky v. Comm'rUnited States Tax Court · 2004