What other settlement terms apply if a taxpayer elects to participate in the settlement initiative?
A.8. The following additional terms apply: — A 5% accuracy-related penalty under IRC Section 6662 will be imposed on any underpayment of tax resulting from the transaction unless the circumstances described in sections 4.E.2 and 3 of Announcement 2005-80 apply. See the FAQs for Announcement 2005-80 for discussion of the exceptions to the penalty. — The parties agree the ESOP, and any successor plan, was never a qualified plan under IRC Section 401(a). The nonqualified trust must be terminated and its assets distributed to the ESOP participants if the trust has not already been terminated. Assets from the nonqualified ESOP may not be rolled over to an IRA or transferred to a qualified retirement or benefits plan. — A final Form 5500 must be filed for the trust. — Any distributions from the ESOP that were made after the plan ceased to be qualified and that were rolled over to another retirement plan must be distributed from the other retirement plan as an amount not eligible for roll
