DNA Pro Ventures v. Commissioner, No. 16-1168 (8th Cir. 2017)
Annotate this CaseThe Eighth Circuit affirmed the disqualification of tax-exempt status of an Employee Stock Ownership Plan (ESOP) because it exceeded the I.R.C. 415 contribution limit. In this case, the Tax Court did not clearly err in basing its findings of fact on the IRS's uncontested Explanation of Items, which established that DNA Pro Ventures' 2008 contribution to Dr. Daniel Prohaska's ESOP account substantially exceeded the section 415 contribution limit for that year.
Court Description: Loken, Author, with Murphy and Kelly, Circuit Judges] Tax Case - Qualified Employee Stock Ownership Plan. Disqualification of tax-exempt status of Employee Stock Ownership Plan for exceeding the I.R.C. sec. 415 contribution limit is affirmed. The Tax Court did not clearly err in basing its findings of fact in the IRS's uncontested Explanation of Items that the Plan was not a section 401(a) qualified plan and the Commissioner did not abuse his discretion in disqualifying the Plan.
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