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Dissolved Corporation as Plan Sponsor


Guest Patrick Foley

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Guest Patrick Foley
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A law firm that dissolved years ago continues to maintain a profit sharing plan, primarily because it would be better protected in the event of a malpractice claim. The plan has an active administrative committee that has succeeded to the employer's powers; the trustee is a bank.

The IRS is reputed to believe that such a plan is not qualified, but I am not aware of any published authority on point. Is there any such authority? If not, is it reasonable to expect that an IRS audit could be settled without plan disqualification or serious sanctions?

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