Ezel / IRS Rulings / 200445040

PLR 200445040: Pension funding waiver denied after company bankruptcy

Number
200445040
Outcome
Denied
Document type
Private Letter Ruling
IRS subject
Minimum Funding Waiver
Topics
Retirement plans, IRAs, and annuities
Code sections
§ 412
Ruling dated
August 9, 2004
Publicly released
November 5, 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.

Currency note: this determination was released in 2004
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
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 asked the IRS to waive a defined benefit pension plan's minimum funding standard for a plan year. The company reported significant losses, a voluntary Chapter 11 bankruptcy filing, and an auction of its assets. The IRS found that the company had not shown its hardship was temporary and proposed denying the request. The company did not arrange a conference within the 21 days offered, so the IRS made the denial final.

Ruling snapshot

  • Question: Would the IRS waive the plan's minimum funding standard for the requested year?
  • Outcome: Denied after the company did not arrange a conference on the proposed denial.
  • Key authorities: IRC § 412 (minimum funding standard); the letter cites no substantive Code provision in its text.

Full text (IRS public release)

Significant Index No. 0412.06-00

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
200445040

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

AUG 09 2004

In re:

Company =

Dear

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 beginning January 1, , has been denied.

The information furnished indicates that the Company experienced significant income losses during and The information furnished also indicates that the Company filed voluntary Chapter 11 bankruptcy proceedings on July and has auctioned off its assets.

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 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 being sent to the Manager, Employee Plans Classification in

200445040

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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