Question

with a tax research paper am I able to use or cite Q & A from the Code Of Federal Regulations? for example

Q–17: What are the income tax consequences if an amount is transferred from a qualified employer plan to a participant or beneficiary as a loan, but there is an express or tacit understanding that the loan will not be repaid? A–17: If there is an express or tacit understanding that the loan will not be repaid or, for any reason, the transaction does not create a debtor-creditor relationship or is otherwise not a bona fide loan, then the amount transferred is treated as an actual distribution from the plan for purposes of the Internal Revenue Code, and is not treated as a loan or as a deemed distribution under section 72(p).

Answer 1

If an amount is transferred from a qualified employer plan to a participant or beneficiary as a loan but there is an express or tacit understanding that the loan will not be repaid then first of all that will not result in a debtor-creditor relationship and will not be a bona fide loan.
For any reason if the transaction does not create a debtor creditor relationship or is otherwise not a bona fide loan, then the amount transferred is treated as an actual distribution from the plan for purposes of the Internal Revenue Code (IRC), and is not treated as a loan or as a deemed distributions under section 72(P).