ID: Office: UILC: CCA_2009042108352450 ------------------------- 4980.00-00 and 4975.00-00 Number: 200922029 Release Date: 5/29/2009 From: -------------------- Sent: Tuesday, April 21, 2009 8:35:30 AM To: ------------------- Cc: ------------------------ ----------------------------------- Subject: RE: -------------- Cases After meeting with -------------- , ------------ from ------------ , and ------------ , it was decided that we should not treat these transactions as prohibited transactions under s ection 4975 of the Code (This is also after consultation with Department of Labor.) or pursue section 4980 excise tax against the owner/sellers of the plan sponsors. The controlled group rules don’t apply to section 4980, ---------------------------------- ------------- --------------------------------------------------------------- Also, section 4980(b) say s that the section 4980 excise tax shall be paid by the employer maintaining the plan. ------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- ------------------------ -------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------- In the ------------ case, in the Form 886A on page 2 it says that the Form 5500 Schedule I for Plan Year ended December 31, ------- show benefits paid of $ ---------------- , which total distributions made to ---- ------------- in Exhibits 5 and 6. This dist ribution amount appears to be a violation of the section 415(b) lim itations. If that is the case the section 415(b) limitation violation would disqualify the Plan. Also, there is no reference in the Form 886A how or whether the $ --------------- was repo rted as taxable income to Taxpayer. Sorry for the delay in getting back to you. ------------------------