PLR 200401015: IRS denies funding waiver for 2001 pension plan year

Number

200401015

Outcome

Denied

Document type

Private Letter Ruling

IRS subject

Minimum Funding Waiver

Topics

Retirement plans, IRAs, and annuities

Code sections

§ 412

Ruling dated

October 10, 2003

Publicly released

January 2, 2004

Source

View Official PDF

Apply this to your situation

This page covers one taxpayer's ruling, issued in 2004, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.

About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.

Transcribed from a scanned original: the IRS released this determination as an image-only PDF. The full text below is a machine transcription, proofread against the scan. Check the original PDF before quoting exact language.

View official IRS release (PDF)

Plain-English summary

A company sought a waiver of the minimum funding standard for its defined benefit pension plan's year ended December 31, 2001. The IRS found that the information supplied did not show its hardship was temporary. The company had significant income losses and negative net worth in later fiscal years. It did not arrange a conference after receiving a tentative denial, so the IRS made that denial final.

Ruling snapshot

Question: Did the company qualify for a minimum funding waiver for the 2001 plan year?
Outcome: Denied: the IRS found no showing that the hardship was temporary and finalized its tentative denial.
Key authorities: IRC § 412 (minimum funding standard).

Full text (IRS public release)

Significant Index No. 0412.06-00

DEPARTMENT OF THE TREASURY
200401015
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

OCT 10 2003

T:EP:RA:T:A1

This letter constitutes notice that with respect to the above-named defined benefit pension plan, your request for a waiver of the minimum funding standard for the plan year ended December 31, 2001, has been denied.

The information furnished indicates that the Company experienced significant income losses experienced by Wellman during the fiscal years beginning April 1, 2001, and April 1, 2002. The information furnished also indicates that the Company had negative net worth at the end of the fiscal years beginning April 1, 2001, and April 1, 2002.

The information furnished failed to demonstrate that the hardship was temporary, and a denial of the request was proposed. The company was informed of our tentative denial and was offered a conference of right by letter dated July 28, 2003. You were given 21 days to have a conference concerning our proposed denial. The 21-day period stated in our letter has passed. You have not communicated with us to arrange a conference. Therefore, our tentative denial is now final.

This ruling is directed only to the taxpayer that requested it. Section 6110(k)(3) of the Code provides that it may not be used or cited by others as precedent.

A copy of this letter is also being sent to the Manager, Employee Plans Classification in

200401015

If you have any questions on this ruling letter, please contact

Sincerely yours,

Norman Greenberg, Manager
Employee Plans Actuarial Group 1

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