Ludden v. Commissioner
United States Tax Court
Held, uncorrected inadvertent failure of a corporation to contribute to trusts which were part of pension and profit-sharing plans on behalf of its only employee eligible under the plans other than the shareholder-officers, who were highly compensated, caused the plans and trusts to fail to qualify under sec. 401(a), I.R.C. 1954, for the year of such failure even though the plans by their terms met the requirements of sec. 401(a), I.R.C. 1954. Held, further, contributions to…
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Held, uncorrected inadvertent failure of a corporation to contribute to trusts which were part of pension and profit-sharing plans on behalf of its only employee eligible under the plans other than the shareholder-officers, who were highly compensated, caused the plans and trusts to fail to qualify under sec. 401(a), I.R.C. 1954, for the year of such failure even though the plans by their terms met the requirements of sec. 401(a), I.R.C. 1954. Held, further, contributions to the trusts made by the corporation on behalf of petitioners, are includable in their taxable income under secs. 402(b)…
1Opinion of the Court
OPINION
Scott, Judge:
Respondent determined a deficiency of $26,917 in petitioners’ Federal income tax for the calendar year 1972. The sole issue for decision is whether amounts contributed on behalf of each petitioner to pension and profit-sharing plans of their wholly owned corporation should be included in petitioners’ taxable income because of failure of the plans to qualify under section 401(a), I.R.C. 1954.1
All of the facts have been stipulated and are found accordingly. •
Petitioners, husband and wife, who resided in Los Angeles at the time of the filing of the petition in this case,…
2Cases cited6 opinions
- Aero Rental v. CommissionerUnited States Tax Court · 1975
- Time Oil Company v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1958
- Quality Brands, Inc. v. CommissionerUnited States Tax Court · 1976
- Myrna Myron v. United StatesCourt of Appeals for the Ninth Circuit · 1977
- Myron v. United StatesDistrict Court, C.D. California · 1974
1 more not listed; retrieve them via the Exa API.
3Cited by24 opinions
- Ma-Tran Corp. v. CommissionerUnited States Tax Court · 1978
- Buzzetta Constr. Corp. v. CommissionerUnited States Tax Court · 1989
- Oakton Distributors, Inc. v. CommissionerUnited States Tax Court · 1979
- Allen Ludden and Betty White Ludden v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1980
- Fazi v. CommissionerUnited States Tax Court · 1994
19 more not listed; retrieve them via the Exa API.