Fazi v. Commissioner
United States Tax Court
P, a dentist, incorporated C and established three pension plans. P was an employee of C. Plan 2 was frozen in 1982. Plan 2 was merged into plan 1 in 1986. P dissolved C in 1986 and distributed all of the assets in the plan 1 trust to employees, including P, in 1987. We held in Fazi v. Commissioner, 102 T.C. 695 (1994) (Fazi I), that plan 1 was not qualified and its related trust was not exempt during 1985, 1986, and 1987. We also held that, except for amounts conceded by R,…
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P, a dentist, incorporated C and established three pension plans. P was an employee of C. Plan 2 was frozen in 1982. Plan 2 was merged into plan 1 in 1986. P dissolved C in 1986 and distributed all of the assets in the plan 1 trust to employees, including P, in 1987. We held in Fazi v. Commissioner, 102 T.C. 695 (1994) (Fazi I), that plan 1 was not qualified and its related trust was not exempt during 1985, 1986, and 1987. We also held that, except for amounts conceded by R, P was taxable in 1987 on the assets distributed to P from plan 1. In Fazi I, R conceded on brief that the taxable…
1Opinion of the Court
OPINION
Vasquez, Judge:
Respondent determined a deficiency in petitioners’ 1986 Federal income tax in the amount of $160,904. The deficiency is attributable to the merger of plan 2, a qualified pension plan, into plan 1, an unqualified pension plan, and actual corporate contributions made to unqualified pension plans 1 and 3 on petitioners’ behalf.1 The 1986 tax year is open for redetermination only if section 6501(e)(1),2 the 6-year statute of limitations, applies. Section 6501(e)(1) .can apply only if the amount merged from the qualified pension plan to the unqualified pension plan (the…
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- Reis v. CommissionerUnited States Tax Court · 1942
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