Tionesta Sand & Gravel, Inc. v. Commissioner
United States Tax Court
In 1968, petitioner adopted a profit-sharing plan and trust agreement. Under the trust agreement, participants' interests became nonforfeitable upon any one of three specified types of terminations. The trust agreement did not provide for full vesting of participants' interests on complete discontinuance of contributions.
Read the full summary
In 1968, petitioner adopted a profit-sharing plan and trust agreement. Under the trust agreement, participants' interests became nonforfeitable upon any one of three specified types of terminations. The trust agreement did not provide for full vesting of participants' interests on complete discontinuance of contributions. Held, the deduction for the fiscal 1973 contribution to petitioner's profit-sharing plan is not allowable under sec. 404(a), I.R.C. 1954, because the profit-sharing plan and trust do not meet the requirements of sec. 401(a)(7), I.R.C. 1954.
1Opinion of the Court
OPINION
Featherston, Judge:
Respondent determined a deficiency in the amount of $9,960.59 in petitioner’s Federal income tax for its taxable year ended February 28, 1973. Due to a concession by petitioner, the sole issue presented for decision is whether petitioner’s profit-sharing plan and trust qualified under section 401(a)1 during its fiscal year ended February 28,1973.
All the facts are stipulated.
Petitioner is a Pennsylvania corporation, with its principal place of business in Hawthorn, Pa. It files its Federal income tax returns on the basis of a fiscal year beginning on March 1 and…
2Cases cited8 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- United States v. CorrellSupreme Court of the United States · 1967
- Jarecki v. G. D. Searle & Co.Supreme Court of the United States · 1961
- Aero Rental v. CommissionerUnited States Tax Court · 1975
- Time Oil Company v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1958
3 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- Schoneberger v. CommissionerUnited States Tax Court · 1980
- Tipton & Kalmbach, Inc. v. CommissionerUnited States Tax Court · 1984
- Fazi v. CommissionerUnited States Tax Court · 1994
- Bolinger v. CommissionerUnited States Tax Court · 1981
- Hamlin Dev. Co. v. CommissionerUnited States Tax Court · 1993
12 more not listed; retrieve them via the Exa API.