26 U.S.C. § 4953 — Tax on excess contributions to black lung benefit trusts
submitted 48 years ago by Pub. L. 95-227 to r/title-26-INTERNAL-REVENUE-CODE · 269 words · no verdicts yet
This section taxes excess contributions made to qualifying black-lung-benefit trusts. It defines the excess amount and protects certain withdrawals from being treated as self-dealing, taxable expenditures, or contrary to the trust’s exempt purposes.
(a) Tax imposed. For each taxable year*, the person making excess contributions to one or more section 501(c)(21) trusts owes 5% of the excess-contribution amount. (b) Excess contribution. It is the sum of (1) the current-year contributions exceeding the deduction allowable under section 192, and (2) the prior-year amount under this subsection, reduced by (A) the current year’s maximum section 192 deduction exceeding current-year contributions, and (B) amounts distributed from the trust to the contributor that were prior-year excess contributions. (c) Withdrawal. Amounts distributed during the year from a section 501(c)(21) trust to its contributor, up to the contributor’s excess contribution, are not treated as (1) self-dealing under section 4951, (2) a taxable expenditure under section 4952, or (3) an act contrary to the purposes for which the trust is exempt under section 501(a).
There is hereby imposed for each taxable year* a tax in an amount equal to 5 percent of the amount of the excess contributions made by a person to or under a trust or trusts described in section 501(c)(21). The tax imposed by this subsection shall be paid by the person making the excess contribution.
For purposes of this section, the term “excess contribution” means the sum of—
the amount by which the amount contributed for the taxable year to a trust or trusts described in section 501(c)(21) exceeds the amount of the deduction allowable to such person for such contributions for the taxable year under section 192, and
the amount determined under this subsection for the preceding taxable year, reduced by the sum of—
the excess of the maximum amount allowable as a deduction under section 192 for the taxable year over the amount contributed to the trust or trusts for the taxable year, and
amounts distributed from the trust to the contributor which were excess contributions for the preceding taxable year.
Amounts distributed during the taxable year from a trust described in section 501(c)(21) to the contributor thereof the sum of which does not exceed the amount of the excess contribution made by the contributor shall not be treated as—
an act of self-dealing (within the meaning of section 4951),
a taxable expenditure (within the meaning of section 4952), or
an act contrary to the purposes for which the trust is exempt from taxation under section 501(a).
Source credit: (Added Pub. L. 95–227, § 4(c)(1), Feb. 10, 1978, 92 Stat. 22.)
- 1978Enacted · Pub. L. 95-227 · 92 Stat. 22
A history note hasn’t been published yet. The record shows enactment by Pub. L. 95-227 on 1978-02-10.
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