News Release IR-1869 (Posted on August 10, 1977 by )

Carol V. Calhoun, Counsel
Venable LLP
600 Massachusetts Avenue, NW
Washington, DC 20001
Phone: (202) 344-4715
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Carol V. Calhoun

News Release IR-1869, August 10, 1977

Washington, D.C. — The Internal Revenue Service today said that issues concerning discrimination and the taxability of the income of trusts relating to state and local government employee retirement plans will not be raised until a review of these matters is completed.

The IRS is reconsidering whether the statutory prohibition against discrimination in coverage and contributions or benefits, under Section 401(a) of the Internal Revenue Code, applies to plans covering various elected and appointed officials of state and local governments. Also under consideration is whether the trusts relating to such plans are subject to tax on their income.

Pending completion of the review, the IRS will resolve these issues in favor of the taxpayer or governmental unit.

August 10, 1977