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
GIDEON L. MEDINA AND CORAZON P. MEDINA, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Medina v. Commissioner
No. 18999-97
United States Tax Court
112 T.C. 51; 1999 U.S. Tax Ct. LEXIS 6; 112 T.C. No. 6; 22 Employee Benefits Cas. (BNA) 2601;
February 22, 1999, Filed
Decision will be entered for respondent.
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.…
2Cases cited7 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
2 more not listed; retrieve them via the Exa API.