Halliburton Co. v. Commissioner
United States Tax Court
In the instant declaratory judgment action under sec. 7476, I.R.C., H seeks review of R's proposed determination that a profit sharing plan sponsored by H experienced a partial termination during 1986. A sharp decline in H's business during such year caused H to initiate net layoffs of 3,891 participants in the plan, reducing participation in the plan by 19.85 percent.
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In the instant declaratory judgment action under sec. 7476, I.R.C., H seeks review of R's proposed determination that a profit sharing plan sponsored by H experienced a partial termination during 1986. A sharp decline in H's business during such year caused H to initiate net layoffs of 3,891 participants in the plan, reducing participation in the plan by 19.85 percent. Held: Such discharges did not cause a partial termination of the plan under sec. 411(d)(3), I.R.C., when the discharges are considered in light of all facts and circumstances.
1Opinion of the Court
OPINION
Wells, Judge:
The instant case is before us on a petition for declaratory judgment under section 7476. The issue presented for decision is whether a profit sharing plan sponsored by Halliburton Co. (Halliburton) experienced a partial termination under section 411(d)(3) for the plan year ending on December 31, 1986.
Unless otherwise indicated, all section references are to the Internal Revenue Code, and all Rule references are to the Tax Court Rules of Practice and Procedure.
Background
The instant case was submitted for declaratory judgment on a stipulated administrative record pursuant to…
2Cases cited35 opinions
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