Outsourced CFO - affiliated service group

If a doctor is a 79% partner at a surgery center and regularly performs service there as a sub-contractor, he is an affiliated service group and can't have a 1-man plan on the side.

If an accountant is a 79% partner of a manufacturing firm and regularly performs services there as a sub-contractor, he can have a 1-man plan on the side since the manufacturing company is not a service organization. 

Seems unfair but legitimate.  Am I misinterpreting?

Isn't the accounting company the service organization in this case?

The accountant is the A-org.  The mfg company is the FSO.  Since mfg is not a service org, they are off the hook

The IRS did see this and tried to block it years ago. The accountant would be part of the equivalent of an affiliated service group with the manufacturer as a "leased owner" if proposed reg. sec. 1.401(o)-1(b) is ever finalized. Don't hold your breath. There are, of course, not even proposed regs for 414(m)(2)(A) and (B), but for A-orgs and B-orgs the statute seems clear enough. 414(o) by definition doesn't work without regs.