Recent Tax Court petitions of interest to practitioners
Article Abstract:
Three cases filed with the US Tax Court are anticipated to shed light on the scope of the prohibition of certain transactions entered into by qualified benefit plans. In one case, the IRS has asserted that a plan loan to a participant was not made in accordance with IRC section 72(p)(2) and should be considered a taxable distribution. Whether ownership of an individual retirement plan constitutes being covered under a qualified plan is at issue in the second case. The third case involves an employer's attempt to correct a stock purchase characterized as a prohibited transaction.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1995
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Surviving spouse benefits vested in employee's current spouse upon employee's retirement and thus could not be subject of later QDRO
Article Abstract:
The US Court of Appeals for the Fourth Circuit affirmed the lower court's summary judgment for the employer in Hopkins v. AT & T Global Information Solutions Co. The lower court agreed with AT & T that a state court order changing the alternate payee for the retired employee's annuity plan was not a qualified domestic relations order under the Employee Retirement Income Security Act. The court also agreed that the current spouse's rights as a beneficiary became vested when her husband retired and began receiving his annuity benefits.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1997
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"Informal hold" practice in anticipation of plan's receipt of QDRO is invalid plan amendment
Article Abstract:
The US Court of Appeals for the 7th Circuit held in Schoonmaker v. Employee Savings Plan of Amoco Corp that a plan administrator needed to notify participants in writing to put a hold on their share of a qualified plan after notification that a qualified domestic relations order was pending. The court held an informal hold without participant notification to be impermissible, since it contradicted the written procedures of the plan. The plaintiff could thus recover any losses due to the unauthorized hold.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1993
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- Abstracts: Treaties - Warsaw Convention - international air transportation - recovery of damages - loss of society - death in air crash - Death on the High Seas Act - maritime and admiralty law
- Abstracts: New developments affecting governmental plans. IRS issues long-awaited deferred compensation employment tax rules
- Abstracts: Seeking a benefits balance in the Industrial Design Treaty Revision (Hague Agreement): Fifth Meeting of Experts, held June 13-16, 1995
- Abstracts: Effects of GATT and NAFTA on PTO practice. Remarks of the Honorable Carlos J. Moorhead before the Patent and Trademark Office Society
- Abstracts: A premium on fraud; when insurance companies don't pay. When disaster strikes; recent floods and storms show that lawyers need to be prepared to shift into emergency practice modes to speed recovery for clients and themselves