Myron

FINDINGS OF FACT AND CONCLUSIONS OF LAW

(NO REFUND OF INCOME TAXES TO MYRNA MYRON-DISCRIMINATORY OPERATION OF PENSION PLAN)

FINDINGS OF FACT

1. This is an action for the refund of federal income taxes and interest there on collected from the plaintiff by the defendant.

2. The plaintiff is a resident of Los Angeles, California.

3. The District Director of Internal Revenue, Los Angeles, California, performed an audit of the corporate income tax returns of Myron’s Ballroom (Ballroom) and Myron's Enterprises (Enterprises) for each of their fiscal years ending September 30, 1967 and September 30, 1968. In doing so, the District Director determined that the corporations’ joint retirement income plan (Plan) which became effective beginning in their fiscal years ending 1967, was not a qualified deferred compensation plan under provisions of the Internal Revenue Code of 1954 (26 U.S.C.) due to discriminatory operation in favor of their sole Shareholder-President, Myrna Myron (Myron). Accordingly, the payments made into the Plan by the corporations in the total amount of $13,-192.60 for each such year was determined to constitute additional income from compensation earned by plaintiff,…