412(i) Plan and IRS Global Settlement Initiative and Penalty under Code Section 6707A

[Guest EMM118]

Hello:

A client filed an IRS Form 13750, Election to Participate in Announcement 2005-80 Settlement Iniative with respect to a 412(i) Plan. The Closing Agreeement recently received states that "[t]his Agreement provides no relief from any other penalty that may apply, including penalties under Code Section 6707A."

While I understand that the IRS has no authority in choosing not to assess this penalty, I realize from IRS Notice 2005-11 that the penalty can be rescinded after it is imposed. I was wondering if the IRS has sought to impose this penalty in other situations. I know that in the cae of certain non-management ESOPs, the IRS has chosen not to assess the listed transaction penalties under Code Section 6707A.

Please remember that this situation deals with a Closing Agreement under the Global Settlement Initiative and not from an audit of the 412(i) Plan.

Thanks in andance for your consideration. Ed

[Guest barbiemoore]

IRS has no authority in choosing not to assess this penalty,

regards,

barbie

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