26 U.S.C. § 4963 — Definitions

(a) “First-tier tax” means tax under subsection (a) of sections 4941, 4942, 4943, 4944, 4945, 4951, 4952, 4955, 4958, 4966, 4967, 4971, or 4975. (b) “Second-tier tax” means tax under subsection (b) of sections 4941, 4942, 4943, 4944, 4945, 4951, 4952, 4955, 4958, 4971, or 4975. (c) “Taxable event” means an act or failure to act creating liability under those listed sections. (d)(1) “Correct” has the meaning in the section imposing the second-tier tax. (2) For section 4942(b), it means reducing undistributed income to zero; for section 4943(b), excess business holdings to zero; and for section 4944, removing the investment from jeopardy. (e)(1) “Correction period” begins when the event occurs and ends 90 days after mailing the section 6212 deficiency notice, extended by any section 6213(a) assessment bar and any other period the Secretary finds reasonable and necessary. (2) The event is treated as occurring, for section 4942, on the first day of the year with undistributed income; for section 4943, on the first day of excess holdings; for section 4971, on the last day of the plan year with a deficiency; and otherwise when it occurred.