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26 U.S.C. § 4963 — Definitions
Federal law — U.S. Code and appendices · legal_authorities
**(a) First tier tax** For purposes of this subchapter, the term “first tier tax” means any tax imposed by subsection (a) of section 4941, 4942, 4943, 4944, 4945, 4951, 4952, 4955, 4958, 4966, 4967, 4971, or 4975.
**(b) Second tier tax** For purposes of this subchapter, the term “second tier tax” means any tax imposed by subsection (b) of section 4941, 4942, 4943, 4944, 4945, 4951, 4952, 4955, 4958, 4971, or 4975.
**(c) Taxable event** For purposes of this subchapter, the term “taxable event” means any act (or failure to act) giving rise to liability for tax under section 4941, 4942, 4943, 4944, 4945, 4951, 4952, 4955, 4958, 4966, 4967, 4971, or 4975.
**(d) Correct** For purposes of this subchapter—
(1) **In general** — Except as provided in paragraph (2), the term “correct” has the same meaning as when used in the section which imposes the second tier tax.
(2) **Special rules** — The term “correct” means—
(A) in the case of the second tier tax imposed by section 4942(b), reducing the amount of the undistributed income to zero,
(B) in the case of the second tier tax imposed by section 4943(b), reducing the amount of the excess business holdings to zero, and
(C) in the case of the second tier tax imposed by section 4944, removing the investment from jeopardy.
**(e) Correction period** For purposes of this subchapter—
(1) **In general** — The term “correction period” means, with respect to any taxable event, the period beginning on the date on which such event occurs and ending 90 days after the date of mailing under section 6212 of a notice of deficiency with respect to the second tier tax imposed on such taxable event, extended by—
(A) any period in which a deficiency cannot be assessed under section 6213(a) (determined without regard to the last sent
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Source location: Title 26, Chapter 42, § 4963; chapter-042-private-foundations-and-certain-other-tax-exempt-organizations.md
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**(a) First tier tax** For purposes of this subchapter, the term “first tier tax” means any tax imposed by subsection (a) of section 4941, 4942, 4943, 4944, 4945, 4951, 4952, 4955, 4958, 4966, 4967, 4971, or 4975.
**(b) Second tier tax** For purposes of this subchapter, the term “second tier tax” means any tax imposed by subsection (b) of section 4941, 4942, 4943, 4944, 4945, 4951, 4952, 4955, 4958, 4971, or 4975.
**(c) Taxable event** For purposes of this subchapter, the term “taxable event” means any act (or failure to act) giving rise to liability for tax under section 4941, 4942, 4943, 4944, 4945, 4951, 4952, 4955, 4958, 4966, 4967, 4971, or 4975.
**(d) Correct** For purposes of this subchapter—
(1) **In general** — Except as provided in paragraph (2), the term “correct” has the same meaning as when used in the section which imposes the second tier tax.
(2) **Special rules** — The term “correct” means—
(A) in the case of the second tier tax imposed by section 4942(b), reducing the amount of the undistributed income to zero,
(B) in the case of the second tier tax imposed by section 4943(b), reducing the amount of the excess business holdings to zero, and
(C) in the case of the second tier tax imposed by section 4944, removing the investment from jeopardy.
**(e) Correction period** For purposes of this subchapter—
(1) **In general** — The term “correction period” means, with respect to any taxable event, the period beginning on the date on which such event occurs and ending 90 days after the date of mailing under section 6212 of a notice of deficiency with respect to the second tier tax imposed on such taxable event, extended by—
(A) any period in which a deficiency cannot be assessed under section 6213(a) (determined without regard to the last sentence of section 4961(b)), and
(B) any other period which the Secretary determines is reasonable and necessary to bring about correction of the taxable event.
(2) **Special rules for when taxable event occurs** — For purposes of paragraph (1), the taxable event shall be treated as occurring—
(A) in the case of section 4942, on the first day of the taxable year for which there was a failure to distribute income,
(B) in the case of section 4943, on the first day on which there are excess business holdings,
(C) in the case of section 4971, on the last day of the plan year in which there is an accumulated funding deficiency, and
(D) in any other case, the date on which such event occurred.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** If any taxable event is corrected during the correction period for such event, then any second tier tax imposed with respect to such event (including interest, additions to the tax, and additional amounts) shall not be assessed, and if assessed the assessment shall be abated, and if collected shall be credited or refunded as an overpayment.
**(b) Supplemental proceeding** If the determination by a court that the taxpayer is liable for a second tier tax has become final, such court shall have jurisdiction to conduct any necessary supplemental proceeding to determine whether the taxable event was corrected during the correction period. Such a supplemental proceeding may be begun only during the period which ends on the 90th day after the last day of the correction period. Where such a supplemental proceeding has begun, the reference in the second sentence of section 6213(a) to a final decision of the Tax Court shall be treated as including a final decision in such supplemental proceeding.
**(c) Suspension of period of collection for second tier tax**
(1) **Proceeding in District Court or United States Court of Federal Claims** — If, not later than 90 days after the day on which the second tier tax is assessed, the first tier tax is paid in full and a claim for refund of the amount so paid is filed, no levy or proceeding in court for the collection of the second tier tax shall be made, begun, or prosecuted until a final resolution of a proceeding begun as provided in paragraph (2) (and of any supplemental proceeding with respect thereto under subsection (b)). Notwithstanding section 7421(a), the collection by levy or proceeding may be enjoined during the time such prohibition is in force by a proceeding in the proper court.
(2) **Suit must be broug
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 4961
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Initial taxes**
(1) **On the organization** — There is hereby imposed on each political expenditure by a section 501(c)(3) organization a tax equal to 10 percent of the amount thereof. The tax imposed by this paragraph shall be paid by the organization.
(2) **On the management** — There is hereby imposed on the agreement of any organization manager to the making of any expenditure, knowing that it is a political expenditure, a tax equal to 2½ percent of the amount thereof, unless such agreement is not willful and is due to reasonable cause. The tax imposed by this paragraph shall be paid by any organization manager who agreed to the making of the expenditure.
**(b) Additional taxes**
(1) **On the organization** — In any case in which an initial tax is imposed by subsection (a)(1) on a political expenditure and such expenditure is not corrected within the taxable period, there is hereby imposed a tax equal to 100 percent of the amount of the expenditure. The tax imposed by this paragraph shall be paid by the organization.
(2) **On the management** — In any case in which an additional tax is imposed by paragraph (1), if an organization manager refused to agree to part or all of the correction, there is hereby imposed a tax equal to 50 percent of the amount of the political expenditure. The tax imposed by this paragraph shall be paid by any organization manager who refused to agree to part or all of the correction.
**(c) Special rules** For purposes of subsections (a) and (b)—
(1) **Joint and several liability** — If more than 1 person is liable under subsection (a)(2) or (b)(2) with respect to the making of a political expenditure, all such persons shall be jointly and severally liable under such subsection with respect to such expenditure.
(2) **Limit for m
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 4955
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** If it is established to the satisfaction of the Secretary that—
(1) a taxable event was due to reasonable cause and not to willful neglect, and
(2) such event was corrected within the correction period for such event,
then any qualified first tier tax imposed with respect to such event (including interest) shall not be assessed and, if assessed, the assessment shall be abated and, if collected, shall be credited or refunded as an overpayment.
**(b) Qualified first tier tax** For purposes of this section, the term “qualified first tier tax” means any first tier tax imposed by subchapter A, C, D, or G of this chapter, except that such term shall not include the tax imposed by section 4941(a) (relating to initial tax on self-dealing).
**(c) Special rule for tax on political expenditures of section 501(c)(3) organizations** In the case of the tax imposed by section 4955(a), subsection (a)(1) shall be applied by substituting “not willful and flagrant” for “due to reasonable cause and not to willful neglect”.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 4962
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Imposition of taxes**
(1) **On the sponsoring organization** — There is hereby imposed on each taxable distribution a tax equal to 20 percent of the amount thereof. The tax imposed by this paragraph shall be paid by the sponsoring organization with respect to the donor advised fund.
(2) **On the fund management** — There is hereby imposed on the agreement of any fund manager to the making of a distribution, knowing that it is a taxable distribution, a tax equal to 5 percent of the amount thereof. The tax imposed by this paragraph shall be paid by any fund manager who agreed to the making of the distribution.
**(b) Special rules** For purposes of subsection (a)—
(1) **Joint and several liability** — If more than one person is liable under subsection (a)(2) with respect to the making of a taxable distribution, all such persons shall be jointly and severally liable under such paragraph with respect to such distribution.
(2) **Limit for management** — With respect to any one taxable distribution, the maximum amount of the tax imposed by subsection (a)(2) shall not exceed $10,000.
**(c) Taxable distribution** For purposes of this section—
(1) **In general** — The term “taxable distribution” means any distribution from a donor advised fund—
(A) to any natural person, or
(B) to any other person if—
(i) such distribution is for any purpose other than one specified in section 170(c)(2)(B), or
(ii) the sponsoring organization does not exercise expenditure responsibility with respect to such distribution in accordance with section 4945(h).
(2) **Exceptions** — Such term shall not include any distribution from a donor advised fund—
(A) to any organization described in section 170(b)(1)(A) (other than a disqualified supporting organization),
(B) t
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 4966
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Imposition of taxes**
(1) **On the donor, donor advisor, or related person** — There is hereby imposed on the advice of any person described in subsection (d) to have a sponsoring organization make a distribution from a donor advised fund which results in such person or any other person described in subsection (d) receiving, directly or indirectly, a more than incidental benefit as a result of such distribution, a tax equal to 125 percent of such benefit. The tax imposed by this paragraph shall be paid by any person described in subsection (d) who advises as to the distribution or who receives such a benefit as a result of the distribution.
(2) **On the fund management** — There is hereby imposed on the agreement of any fund manager to the making of a distribution, knowing that such distribution would confer a benefit described in paragraph (1), a tax equal to 10 percent of the amount of such benefit. The tax imposed by this paragraph shall be paid by any fund manager who agreed to the making of the distribution.
**(b) Exception** No tax shall be imposed under this section with respect to any distribution if a tax has been imposed with respect to such distribution under section 4958.
**(c) Special rules** For purposes of subsection (a)—
(1) **Joint and several liability** — If more than one person is liable under paragraph (1) or (2) of subsection (a) with respect to a distribution described in subsection (a), all such persons shall be jointly and severally liable under such paragraph with respect to such distribution.
(2) **Limit for management** — With respect to any one distribution described in subsection (a), the maximum amount of the tax imposed by subsection (a)(2) shall not exceed $10,000.
**(d) Person described** A person is described in this subse
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 4967
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Federal law — U.S. Code and appendices · legal_authorities
Page 3050
TITLE 26—INTERNAL REVENUE CODE
§ 4963
Pub. L. 109–280, to which such amendment relates, see
section 3(j) of Pub. L. 110–172, set out as a note under
section 170 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Pub. L. 105–34, title XVI, § 1603(c), Aug. 5, 1997, 111
Stat. 1097, provided that: ‘‘The amendments made by
this section [amending this section and section 6033 of
this title] shall take effect as if included in the provi-
sions of the Taxpayer Bill of Rights 2 [Pub. L. 104–168]
to which such amendments relate.’’
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100–203 applicable to taxable
years beginning after Dec. 22, 1987, see section 10712(d)
of Pub. L. 100–203, set out as an Effective Date note
under section 4955 of this title.
EFFECTIVE DATE
Pub. L. 98–369, div. A, title III, § 305(c), July 18, 1984,
98 Stat. 784, provided that: ‘‘The amendments made by
this section [enacting this section, redesignating
former section 4962 as 4963, and amending sections 4942,
6213, and 6503 of this title] shall apply to taxable events
occurring after December 31, 1984.’’
§ 4963. Definitions
(a) First tier tax
For purposes of this subchapter, the term
‘‘first tier tax’’ means any tax imposed by sub-
section (a) of section 4941, 4942, 4943, 4944, 4945,
4951, 4952, 4955, 4958, 4966, 4967, 4971, or 4975.
(b) Second tier tax
For purposes of this subchapter, the term
‘‘second tier tax’’ means any tax imposed by
subsection (b) of section 4941, 4942, 4943, 4944,
4945, 4951, 4952, 4955, 4958, 4971, or 4975.
(c) Taxable event
For purposes of this subchapter, the term
‘‘taxable event’’ means any act (or failure to
act) giving rise to liability for tax under section
4941, 4942, 4943, 4944, 4945, 4951, 4952, 4955, 4958,
4966, 4967, 4971, o
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 4963
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