Service with predecessor employer is "service with the employer" under s. 415(b)(5) if continuity of interest exists
Article Abstract:
The US Tax Court ruled in Lear Eye Clinic Ltd. v. Commissioner to resolve remaining IRC section 415(b) years of service issues that resulted from a consolidated actuarial assumption case, Citrus Valley Estates, Inc. v. Commissioner. For one taxpayer, the Court found that there was the requisite continuity of service for ophthalmology practice that began as a sole proprietorship and turned into a two-person corporation. For the other taxpayer, the Court found that there had not been adequate factual showings to demonstrate a continuous law practice.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1996
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Predecessor and current employer not members of controlled group or affiliated service group under s. 414, and not same employer for s. 415(e) purposes
Article Abstract:
The IRS ruled in Private Letter Ruling 9541041 that the benefit plans offered by a corporation and the corporation that it merged into are not subject to the aggregation rules of IRC sections 414 and 415(e). The corporations could not be members of the same controlled group for purposes of section 414 because they did not exist at the same time. Because they were not members of a controlled group, the corporations were not required to aggregate benefits for plan testing purposes.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1995
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PWBA proposes revision to plan asset regulations where participant contributions are involved
Article Abstract:
Proposed Dept of Labor regulations are revising the definition of plan assets for the purpose of employer treatment of funds contributed by employees to pension plans and other benefit plans. Reducing the lag time between deduction from pay and contribution to the plan will improve plan earnings and reduce the risk of misappropriation. Employers will be held to the same standards for plan contributions as they are for funds withheld for income and employment tax purposes.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1996
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