Issue Recognition Problems Identify the tax issue or issues suggested by the following situations and state each issue in the form of a question.
Mr. and Mrs. Vishnu are the sole shareholders of VC Enterprises. They are also employed by VC and participate in its qualified pension plan. VC is experiencing cash flow difficulties. To ease the strain, Mr. and Mrs. Vishnu voluntarily forfeited their vested benefits under the plan and instructed the plan administrator to transfer the $219,000 value of such benefits back to VC.