Tax Court: Non-Profit Not Subject to Excise Tax on Plan Reversion

The United States Tax Court, in a division opinion authored by Judge Haines, found that a non-profit organization, Research Corporation, was not subject to excise tax under Section 4980 on a $4.4 million reversion from a defined benefit retirement plan. The court held that Research Corporation was never subject to tax under subtitle A and the plan was not a qualified plan subject to the excise tax. The court also held that it did not have jurisdiction to issue a refund for excise taxes already paid.

Read the opinion here:
Research Corporation v. Commissioner, 138 T.C. No. 7 (2012)

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