26 U.S.C. § 4979A — Tax on certain prohibited allocations of qualified securities

there is a prohibited allocation of qualified securities by any employee^* stock^* ownership plan or eligible worker-owned cooperative,

there is an allocation described in section 664(g)(5)(A),

there is any allocation of employer securities which violates the provisions of section 409(p), or a nonallocation year described in subsection (e)(2)(C) with respect to an employee stock ownership plan, or

any synthetic equity is owned by a disqualified person in any nonallocation year,

any allocation of qualified securities acquired in a sale to which section 1042 applies which violates the provisions of section 409(n), and

any benefit which accrues to any person in violation of the provisions of section 409(n).

in the case of an allocation referred to in paragraph (1) or (2) of subsection (a), by—

which made the written statement described in section 664(g)(1)(E) or in section 1042(b)(3)(B) (as the case may be), and

in the case of an allocation or ownership referred to in paragraph (3) or (4) of subsection (a), by the S corporation^* the stock in which was so allocated or owned.

the 1st allocation of such securities in connection with a qualified gratuitous transfer (as defined in section 664(g)(1)), or

the date on which the Secretary^* is notified of the allocation described in subsection (a)(2).

Except as provided in paragraph (2), terms used in this section have the same respective meanings as when used in sections 409 and 4978.