Quality Brands, Inc. v. Commissioner
United States Tax Court
(1) The petitioners set up a profit-sharing plan which provided for graduated vesting of employee accounts. When certain employees separated from service, the trustees forfeited all of their account balances, including vested portions, and reallocated them to the remaining participants on the basis of their total participation in the plan.
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(1) The petitioners set up a profit-sharing plan which provided for graduated vesting of employee accounts. When certain employees separated from service, the trustees forfeited all of their account balances, including vested portions, and reallocated them to the remaining participants on the basis of their total participation in the plan. Held, such forfeitures were reallocated in such a manner as to discriminate in favor of one of the prohibited groups, and consequently, the plan did not qualify under sec. 401(a), I.R.C. 1954, for those years. (2) One of the petitioners changed its…
1Opinion of the Court
Simpson, Judge:
The Commissioner determined the following deficiencies in the petitioners’ Federal corporate income taxes:
Petitioner Year ending June 30— Deficiency
Quality Brands, Inc. 1971 $440.00
1972 440.00
Beverage Sales, Inc.. 1971 880.00
1972 4,526.67
Most of the issues have been conceded; the two issues remaining for decision are: (1) Whether a profit-sharing plan established by the petitioners qualified in operation under section 401(a) of the Internal Revenue Code of 1954;1 and (2) whether the petitioner, Beverage Sales, Inc., may deduct under section 162 the cost of changing its…
2Cases cited15 opinions
- Aero Rental v. CommissionerUnited States Tax Court · 1975
- Time Oil Company v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1958
- Harold D. Greenwald and Nana Greenwald, on Review v. Commissioner of Internal Revenue, on ReviewCourt of Appeals for the Second Circuit · 1966
- Bernard McMenamy Contractor, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1971
- Bernard McMenamy, Contractor, Inc. v. CommissionerUnited States Tax Court · 1970
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3Cited by29 opinions
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