r/title-26-INTERNAL-REVENUE-CODE wiki — defined terms

“United States” applies throughout its subchapter

The term “United States” has the meaning given such term by section 4612(a)(4). (3) Importer

“importer” applies throughout its subchapter

The term “importer” means the person entering the taxable substance for consumption, use, or warehousing. (2) Taxable chemicals; United States The terms “taxable chemical” and “United States” have the respective meanings given such terms by section 4662(a). (c) Disposition of revenues from Puerto Rico and the Virgin Islands The provisions of subsections (a)(3) and (b)(3) of section 7652 shall not apply to any tax imposed by section 4671.

“taxable substance” applies throughout its subchapter

The term “taxable substance” means any substance which, at the time of sale or use by the importer, is listed as a taxable substance by the Secretary for purposes of this subchapter. (2) Determination of substances on list A substance shall be listed under paragraph (1) if— (A) the substance is contained in the list under paragraph (3), or (B) the Secretary determines, in consultation with the Administrator of the Environmental Protection Agency and the Commissioner of U.S.

“imported taxable product” applies throughout its subchapter

The term “imported taxable product” means any product (other than an ozone-depleting chemical) entered into the United States for consumption, use, or warehousing if any ozone-depleting chemical was used as material in the manufacture or production of such product. (2) De minimis exception The term “imported taxable product” shall not include any product specified in regulations prescribed by the Secretary as using a de minimis amount of ozone-depleting chemicals as materials in the manufacture or production thereof.

“importer” applies throughout its subchapter

The term “importer” means the person entering the article for consumption, use, or warehousing. (2) United States

“newly listed chemical” applies throughout its subchapter

the term “newly listed chemical” means any substance which appears in the table contained in subsection (a)(2) below Halon-2402. (e) Other definitions For purposes of this subchapter— (1) Importer

“ozone-depleting chemical” applies throughout its subchapter

The term “ozone-depleting chemical” means any substance— (A) which, at the time of the sale or use by the manufacturer, producer, or importer, is listed as an ozone-depleting chemical in the table contained in paragraph (2), and (B) which is manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing.

“ozone-depletion factor” applies throughout its subchapter

the term “ozone-depletion factor” means, with respect to an ozone-depleting chemical, the factor assigned to such chemical under the following table: Ozone-depleting chemical: Ozone-depletion factor: CFC–11 1.0 CFC–12 1.0 CFC–113 0.8 CFC–114 1.0 CFC–115 0.6 Halon-1211 3.0 Halon-1301 10.0 Halon-2402 6.0 Carbon tetrachloride 1.1 Methyl chloroform 0.1 CFC–13 1.0 CFC–111 1.0 CFC–112 1.0 CFC–211 1.0 CFC–212 1.0 CFC–213 1.0 CFC–214 1.0 CFC–215 1.0 CFC–216 1.0 CFC–217 1.0. (c) Imported taxable product For purposes of this subchapter— (1) In general

“qualified sale” applies throughout its subchapter

the term “qualified sale” means any sale by the manufacturer, producer, or importer of any substance— (i) for use by the purchaser as a propellant in metered dose inhalers, or (ii) for resale by the purchaser to a 2d purchaser for such use by the 2d purchaser. The preceding sentence shall apply only if the manufacturer, producer, and importer, and the 1st and 2d purchasers (if any) meet such registration requirements as may be prescribed by the Secretary.

“tax-increase date” applies in that section

the term “tax-increase date” means January 1 of any calendar year. (2) Due date The taxes imposed by this subsection on January 1 of any calendar year shall be paid on or before June 30 of such year. (3) Application of other laws All other provisions of law, including penalties, applicable with respect to the taxes imposed by section 4681 shall apply to the floor stocks taxes imposed by this subsection.

“United States” applies throughout its subchapter

The term “United States” has the meaning given such term by section 4612(a)(4). (f) Special rules (1) Fractional parts of a pound In the case of a fraction of a pound, the tax imposed by this subchapter shall be the same fraction of the amount of such tax imposed on a whole pound. (2) Disposition of revenues from Puerto Rico and the Virgin Islands The provisions of subsections (a)(3) and (b)(3) of section 7652 shall not apply to any tax imposed by this subchapter.

“registered form” applies in that section

The term “registered form” has the same meaning as when used in section 163(f).

“registration-required obligation” applies in that section

The term “registration-required obligation” has the same meaning as when used in section 163(f), except that such term shall not include any obligation which— (i) is required to be registered under section 149(a), or (ii) is described in subparagraph (B).

“excess lobbying expenditures” applies in that section

the term “excess lobbying expenditures” means, for a taxable year, the greater of— (1) the amount by which the lobbying expenditures made by the organization during the taxable year exceed the lobbying nontaxable amount for such organization for such taxable year, or (2) the amount by which the grass roots expenditures made by the organization during the taxable year exceed the grass roots nontaxable amount for such organization for such taxable year. (c) Definitions For purposes of this section— (1) Lobbying expenditures

“exempt purpose expenditures” applies in that section

The term “exempt purpose expenditures” means, with respect to any organization for any taxable year, the total of the amounts paid or incurred by such organization to accomplish purposes described in section 170(c)(2)(B) (relating to religious, charitable, educational, etc., purposes). (B) Certain amounts included

“grass roots expenditures” applies in that section

The term “grass roots expenditures” means expenditures for the purpose of influencing legislation (as defined in subsection (d) without regard to paragraph (1)(B) thereof). (4) Grass roots nontaxable amount The grass roots nontaxable amount for any organization for any taxable year is 25 percent of the lobbying nontaxable amount (determined under paragraph (2)) for such organization for such taxable year. (d) Influencing legislation (1) General rule Except as otherwise provided in paragraph (2), for purposes of this section,

“influencing legislation” applies in that section

the term “influencing legislation” means— (A) any attempt to influence any legislation through an attempt to affect the opinions of the general public or any segment thereof, and (B) any attempt to influence any legislation through communication with any member or employee of a legislative body, or with any government official or employee who may participate in the formulation of the legislation.

“legislation” applies in that section

The term “legislation” includes action with respect to Acts, bills, resolutions, or similar items by the Congress, any State legislature, any local council, or similar governing body, or by the public in a referendum, initiative, constitutional amendment, or similar procedure. (3) Action The term “action” is limited to the introduction, amendment, enactment, defeat, or repeal of Acts, bills, resolutions, or similar items.

“lobbying expenditures” applies in that section

The term “lobbying expenditures” means expenditures for the purpose of influencing legislation (as defined in subsection (d)). (2) Lobbying nontaxable amount The lobbying nontaxable amount for any organization for any taxable year is the lesser of (A) $1,000,000 or (B) the amount determined under the following table: If the exempt purpose expenditures are— The lobbying nontaxable amount is— Not over $500,000 20 percent of the exempt purpose expenditures. Over $500,000 but not over $1,000,000 $100,000, plus 15 percent of the excess of the exempt purpose expenditures over $500,000.

“lobbying expenditure” applies in that section

The term “lobbying expenditure” means any amount paid or incurred by the organization in carrying on propaganda, or otherwise attempting to influence legislation. (2) Organization manager

“organization manager” applies in that section

The term “organization manager” has the meaning given to such term by section 4955(f)(2). (3) Joint and several liability If more than 1 person is liable under subsection (b), all such persons shall be jointly and severally liable under such subsection.

“disqualified individual” applies in that section

The term “disqualified individual” means, with respect to any private foundation, an individual who is— (i) a substantial contributor to the foundation, (ii) an owner of more than 20 percent of— (I) the total combined voting power of a corporation, (II) the profits interest of a partnership, or (III) the beneficial interest of a trust or unincorporated enterprise, which is a substantial contributor to the foundation, or (iii) a member of the family of any individual described in clause (i) or (ii). (C) Substantial contributor

“exempt operating foundation” applies in that section

the term “exempt operating foundation” means, with respect to any taxable year, any private foundation if— (A) such foundation is an operating foundation (as defined in section 4942(j)(3)), (B) such foundation has been publicly supported for at least 10 taxable years, (C) at all times during the taxable year, the governing body of such foundation— (i) consists of individuals at least 75 percent of whom are not disqualified individuals, and (ii) is broadly representative of the general public, and (D) at no time during the taxable year does such foundation have an officer who is a disqualified individual.

“family” applies in that section

The term “family” has the meaning given to such term by section 4946(d). (E) Constructive ownership The rules of paragraphs (3) and (4) of section 4946(a) shall apply for purposes of subparagraph (B)(ii).

“gross investment income” applies in that section

the term “gross investment income” means the gross amount of income from interest, dividends, rents, payments with respect to securities loans (as defined in section 512(a)(5)), and royalties, but not including any such income to the extent included in computing the tax imposed by section 511. Such term shall also include income from sources similar to those in the preceding sentence.

“substantial contributor” applies in that section

The term “substantial contributor” means a person who is described in section 507(d)(2). (D) Family

“amount involved” applies in that section

The term “amount involved” means, with respect to any act of self-dealing, the greater of the amount of money and the fair market value of the other property given or the amount of money and the fair market value of the other property received; except that, in the case of services described in subsection (d)(2)(E), the amount involved shall be only the excess compensation. For purposes of the preceding sentence, the fair market value— (A) in the case of the taxes imposed by subsection (a), shall be determined as of the date on which the act of self-dealing occurs; and (B) in the case of the taxes imposed by subsection (b), shall be the highest fair market value during the taxable period.

“correct” applies in that section

The terms “correction” and “correct” mean, with respect to any act of self-dealing, undoing the transaction to the extent possible, but in any case placing the private foundation in a financial position not worse than that in which it would be if the disqualified person were dealing under the highest fiduciary standards.

“correction” applies in that section

The terms “correction” and “correct” mean, with respect to any act of self-dealing, undoing the transaction to the extent possible, but in any case placing the private foundation in a financial position not worse than that in which it would be if the disqualified person were dealing under the highest fiduciary standards.

“self-dealing” applies in that section

the term “self-dealing” means any direct or indirect— (A) sale or exchange, or leasing, of property between a private foundation and a disqualified person; (B) lending of money or other extension of credit between a private foundation and a disqualified person; (C) furnishing of goods, services, or facilities between a private foundation and a disqualified person; (D) payment of compensation (or payment or reimbursement of expenses) by a private foundation to a disqualified person; (E) transfer to, or use by or for the benefit of, a disqualified person of the income or assets of a private foundation; and (F) agreement by a private foundation to make any payment of money or other property to …

“taxable period” applies in that section

The term “taxable period” means, with respect to any act of self-dealing, the period beginning with the date on which the act of self-dealing occurs and ending on the earliest of— (A) the date of mailing a notice of deficiency with respect to the tax imposed by subsection (a)(1) under section 6212, (B) the date on which the tax imposed by subsection (a)(1) is assessed, or (C) the date on which correction of the act of self-dealing is completed. (2) Amount involved

“adjusted net income” applies in that section

the term “adjusted net income” means the excess (if any) of— (A) the gross income for the taxable year (determined with the income modifications provided by paragraph (2)), over (B) the sum of the deductions (determined with the deduction modifications provided by paragraph (3)) which would be allowed to a corporation subject to the tax imposed by section 11 for the taxable year.

“allowable distribution period” applies in that section

The term “allowable distribution period” means, with respect to any private foundation, the period beginning with the first day of the first taxable year following the taxable year in which the incorrect valuation (described in subsection (a)(2)) occurred and ending 90 days after the date of mailing of a notice of deficiency (with respect to the tax imposed by subsection (a)) under section 6212 extended by— (A) any period in which a deficiency cannot be assessed under section 6213(a), and (B) any other period which the Secretary determines is reasonable and necessary to permit a distribution of undistributed income under this section. (3) Operating foundation For purposes of this section,

“distrib­utable amount” applies in that section

the term “distrib­utable amount” means, with respect to any foundation for any taxable year, an amount equal to— (1) the sum of the minimum investment return plus the amounts described in subsection (f)(2)(C), reduced by (2) the sum of the taxes imposed on such private foundation for the taxable year under subtitle A and section 4940.

“functionally related business” applies in that section

The term “functionally related business” means— (A) a trade or business which is not an unrelated trade or business (as defined in section 513), or (B) an activity which is carried on within a larger aggregate of similar activities or within a larger complex of other endeavors which is related (aside from the need of the organization for income or funds or the use it makes of the profits derived) to the exempt purposes of the organization. (5) Certain elderly care facilities For purposes of this section (but no other provisions of this title),

“operating foundation” applies in that section

the term “operating foundation” means any organization— (A) which makes qualifying distributions (within the meaning of paragraph (1) or (2) of subsection (g)) directly for the active conduct of the activities constituting the purpose or function for which it is organized and operated equal to substantially all of the lesser of— (i) its adjusted net income (as defined in subsection (f)), or (ii) its minimum investment return; and (B) (i) substantially more than half of the assets of which are devoted directly to such activities or to functionally related businesses (as defined in paragraph (4)), or to both, or are stock of a corporation which is controlled by the foundation and …

“qualifying distribution” applies in that section

the term “qualifying distribution” means— (A) any amount (including that portion of reasonable and necessary administrative expenses) paid to accomplish one or more purposes described in section 170(c)(2)(B), other than any contribution to (i) an organization controlled (directly or indirectly) by the foundation or one or more disqualified persons (as defined in section 4946) with respect to the foundation, except as provided in paragraph (3), or (ii) a private foundation which is not an operating foundation (as defined in subsection (j)(3)), except as provided in paragraph (3), or (B) any amount paid to acquire an asset used (or held for use) directly in carrying out one or more purposes …

“taxable period” applies in that section

The term “taxable period” means, with respect to the undistributed income for any taxable year, the period beginning with the first day of the taxable year and ending on the earlier of— (A) the date of mailing of a notice of deficiency with respect to the tax imposed by subsection (a) under section 6212, or (B) the date on which the tax imposed by subsection (a) is assessed. (2) Allowable distribution period

“undistributed income” applies in that section

the term “undistributed income” means, with respect to any private foundation for any taxable year as of any time, the amount by which— (1) the distributable amount for such taxable year, exceeds (2) the qualifying distributions made before such time out of such distributable amount. (d) Distributable amount For purposes of this section,

“disqualified person” applies in that section

the term “disqualified person” means, with respect to the donor advised fund, any person who is— (A) described in section 4966(d)(2)(A)(iii), (B) a member of the family of an individual described in subparagraph (A), or (C) a 35-percent controlled entity (as defined in section 4958(f)(3) by substituting “persons described in subparagraph (A) or (B) of section 4943(e)(2)” for “persons described in subparagraph (A) or (B) of paragraph (1)” in subparagraph (A)(i) thereof).

“excess business holdings” applies in that section

The term “excess business holdings” means, with respect to the holdings of any private foundation in any business enterprise, the amount of stock or other interest in the enterprise which the foundation would have to dispose of to a person other than a disqualified person in order for the remaining holdings of the foundation in such enterprise to be permitted holdings. (2) Permitted holdings in a corporation (A) In general The permitted holdings of any private foundation in an incorporated business enterprise are— (i) 20 percent of the voting stock, reduced by (ii) the percentage of the voting stock owned by all disqualified persons.

“functionally integrated type III supporting organization” applies in that section

The term “functionally integrated type III supporting organization” means a type III supporting organization which is not required under regulations established by the Secretary to make payments to supported organizations (as defined under section 509(f)(3)) due to the activities of the organization related to performing the functions of, or carrying out the purposes of, such supported organizations.

“second phase” applies in that section

the term “second phase” means the 15-year period immediately following the 20-year, 15-year, or 10-year period described in subparagraph (B), whichever applies, as modified by subparagraph (C). (E) Clause (ii) of subparagraph (B) shall not apply with respect to any business enterprise if before January 1, 1971 , one or more individuals who are substantial contributors (or members of the family (within the meaning of section 4946(d)) of one or more substantial contributors) to the private foundation and who on May 26, 1969 , held more than 15 percent of the voting stock of the enterprise elect, in such manner as the Secretary may by regulations prescribe, not to have such clause (ii) apply …

“taxable period” applies in that section

The term “taxable period” means, with respect to any excess business holdings of a private foundation in a business enterprise, the period beginning on the first day on which there are excess holdings and ending on the earlier of— (A) the date of mailing of a notice of deficiency with respect to the tax imposed by subsection (a) under section 6212 in respect of such holdings, or (B) the date on which the tax imposed by subsection (a) in respect of such holdings is assessed.

“type III supporting organization” applies in that section

The term “type III supporting organization” means an organization which meets the requirements of subparagraphs (A) and (C) of section 509(a)(3) and which is operated in connection with one or more organizations described in paragraph (1) or (2) of section 509(a). (B) Functionally integrated type III supporting organization

“taxable period” applies in that section

The term “taxable period” means, with respect to any investment which jeopardizes the carrying out of exempt purposes, the period beginning with the date on which the amount is so invested and ending on the earliest of— (A) the date of mailing of a notice of deficiency with respect to the tax imposed by subsection (a)(1) under section 6212, (B) the date on which the tax imposed by subsection (a)(1) is assessed, or (C) the date on which the amount so invested is removed from jeopardy.

“correct” applies in that section

The terms “correction” and “correct” mean, with respect to any taxable expenditure, (A) recovering part or all of the expenditure to the extent recovery is possible, and where full recovery is not possible such additional corrective action as is prescribed by the Secretary by regulations, or (B) in the case of a failure to comply with subsection (h)(2) or (h)(3), obtaining or making the report in question. (2) Taxable period

“correction” applies in that section

The terms “correction” and “correct” mean, with respect to any taxable expenditure, (A) recovering part or all of the expenditure to the extent recovery is possible, and where full recovery is not possible such additional corrective action as is prescribed by the Secretary by regulations, or (B) in the case of a failure to comply with subsection (h)(2) or (h)(3), obtaining or making the report in question. (2) Taxable period

“taxable expenditure” applies in that section

the term “taxable expenditure” means any amount paid or incurred by a private foundation— (1) to carry on propaganda, or otherwise to attempt, to influence legislation, within the meaning of subsection (e), (2) except as provided in subsection (f), to influence the outcome of any specific public election, or to carry on, directly or indirectly, any voter registration drive, (3) as a grant to an individual for travel, study, or other similar purposes by such individual, unless such grant satisfies the requirements of subsection (g), (4) as a grant to an organization unless— (A) such organization— (i) is described in paragraph (1) or (2) of section 509(a), (ii) is an organization described in …

“taxable period” applies in that section

The term “taxable period” means, with respect to any taxable expenditure, the period beginning with the date on which the taxable expenditure occurs and ending on the earlier of— (A) the date of mailing a notice of deficiency with respect to the tax imposed by subsection (a)(1) under section 6212, or (B) the date on which the tax imposed by subsection (a)(1) is assessed.

“disqualified person” applies throughout its subchapter

the term “disqualified person” means, with respect to a private foundation, a person who is— (A) a substantial contributor to the foundation, (B) a foundation manager (within the meaning of subsection (b)(1)), (C) an owner of more than 20 percent of— (i) the total combined voting power of a corporation, (ii) the profits interest of a partnership, or (iii) the beneficial interest of a trust or unincorporated enterprise, which is a substantial contributor to the foundation, (D) a member of the family (as defined in subsection (d)) of any individual described in subparagraph (A), (B), or (C), (E) a corporation of which persons described in subparagraph (A), (B), (C), or (D) own more than 35 …

“foundation manager” applies throughout its subchapter

the term “foundation manager” means, with respect to any private foundation— (1) an officer, director, or trustee of a foundation (or an individual having powers or responsibilities similar to those of officers, directors, or trustees of the foundation), and (2) with respect to any act (or failure to act), the employees of the foundation having authority or responsibility with respect to such act (or failure to act). (c) Government official For purposes of subsection (a)(1)(I) and section 4941,

“government official” applies throughout its subchapter

the term “government official” means, with respect to an act of self-dealing described in section 4941, an individual who, at the time of such act, holds any of the following offices or positions (other than as a “special Government employee”, as defined in section 202(a) of title 18 , United States Code): (1) an elective public office in the executive or legislative branch of the Government of the United States, (2) an office in the executive or judicial branch of the Government of the United States, appointment to which was made by the President, (3) a position in the executive, legislative, or judicial branch of the Government of the United States— (A) which is listed in schedule C of …

“substantial contributor” applies throughout its subchapter

the term “substantial contributor” means a person who is described in section 507(d)(2). (3) Stockholdings For purposes of paragraphs (1)(C)(i) and (1)(E), there shall be taken into account indirect stockholdings which would be taken into account under section 267(c), except that, for purposes of this paragraph, section 267(c)(4) shall be treated as providing that the members of the family of an individual are the members within the meaning of subsection (d).

“prohibited transaction” applies in that section

the term “prohibited transaction” means any act or failure to act (other than with respect to section 4942(e)) which would subject a foreign organization described in subsection (b), or a disqualified person (as defined in section 4946) with respect thereto, to liability for a penalty under section 6684 or a tax under section 507 if such foreign organization were a domestic organization.

“amount involved” applies in that section

The term “amount involved” means, with respect to any act of self-dealing, the greater of the amount of money and the fair market value of the other property given or the amount of money and the fair market value of the other property received; except that in the case of services described in subsection (d)(2)(C), the amount involved shall be only the excess compensation. For purposes of the preceding sentence, the fair market value— (A) in the case of the taxes imposed by subsection (a), shall be determined as of the date on which the act of self-dealing occurs; and (B) in the case of taxes imposed by subsection (b), shall be the highest fair market value during the taxable period.

“correct” applies in that section

The terms “correction” and “correct” mean, with respect to any act of self-dealing, undoing the transaction to the extent possible, but in any case placing the trust in a financial position not worse than that in which it would be if the disqualified person were dealing under the highest fiduciary standards. (4) Disqualified person

“correction” applies in that section

The terms “correction” and “correct” mean, with respect to any act of self-dealing, undoing the transaction to the extent possible, but in any case placing the trust in a financial position not worse than that in which it would be if the disqualified person were dealing under the highest fiduciary standards. (4) Disqualified person

“disqualified person” applies in that section

The term “disqualified person” means, with respect to a trust described in section 501(c)(21), a person who is— (A) a contributor to the trust, (B) a trustee of the trust, (C) an owner of more than 10 percent of— (i) the total combined voting power of a corporation, (ii) the profits interest of a partnership, or (iii) the beneficial interest of a trust or unincorporated enterprise, which is a contributor to the trust, (D) an officer, director, or employee of a person who is a contributor to the trust, (E) the spouse, ancestor, lineal descend­ant, or spouse of a lineal descendant of an individual described in subparagraph (A), (B), (C), or (D), (F) a corporation of which persons described in …

“self-dealing” applies in that section

the term “self-dealing” means any direct or indirect— (A) sale, exchange, or leasing of real or personal property between a trust described in section 501(c)(21) and a disqualified person; (B) lending of money or other extension of credit between such a trust and a disqualified person; (C) furnishing of goods, services, or facilities between such a trust and a disqualified person; (D) payment of compensation (or payment or reimbursement of expenses) by such a trust to a disqualified person; and (E) transfer to, or use by or for the benefit of, a disqualified person of the income or assets of such a trust.

“taxable period” applies in that section

The term “taxable period” means, with respect to any act of self-dealing, the period beginning with the date on which the act of self-dealing occurs and ending on the earliest of— (A) the date of mailing a notice of deficiency with respect to the tax imposed by subsection (a)(1) under section 6212, (B) the date on which the tax imposed by subsection (a)(1) is assessed, or (C) the date on which correction of the act of self-dealing is completed. (2) Amount involved

“correct” applies in that section

The terms “correction” and “correct” mean, with respect to any taxable expenditure, recovering part or all of the expenditure to the extent recovery is possible, and where full recovery is not possible, contributions by the person or persons whose liabilities for black lung benefit claims (as defined in section 192(e)) are to be paid out of the trust to the extent necessary to place the trust in a financial position not worse than that in which it would be if the taxable expenditure had not been made. (2) Taxable period

“correction” applies in that section

The terms “correction” and “correct” mean, with respect to any taxable expenditure, recovering part or all of the expenditure to the extent recovery is possible, and where full recovery is not possible, contributions by the person or persons whose liabilities for black lung benefit claims (as defined in section 192(e)) are to be paid out of the trust to the extent necessary to place the trust in a financial position not worse than that in which it would be if the taxable expenditure had not been made. (2) Taxable period

“taxable expenditure” applies in that section

the term “taxable expenditure” means any amount paid or incurred by a trust described in section 501(c)(21) other than for a purpose specified in such section. (e) Definitions (1) Correction

“taxable period” applies in that section

The term “taxable period” means, with respect to any taxable expenditure, the period beginning with the date on which the taxable expenditure occurs and ending on the earlier of— (A) the date of mailing a notice of deficiency with respect to the tax imposed by subsection (a)(1) under section 6212, or (B) the date on which the tax imposed by subsection (a)(1) is assessed.

“excess contribution” applies in that section

the term “excess contribution” means the sum of— (1) 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 (2) the amount determined under this subsection for the preceding taxable year, reduced by the sum of— (A) 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 (B) amounts distributed from the trust to the contributor which were excess contributions for the preceding taxable …

“correct” applies in that section

The terms “correction” and “correct” mean, with respect to any political expenditure, recovering part or all of the expenditure to the extent recovery is possible, establishment of safeguards to prevent future political expenditures, and where full recovery is not possible, such additional corrective action as is prescribed by the Secretary by regulations. (4) Taxable period

“correction” applies in that section

The terms “correction” and “correct” mean, with respect to any political expenditure, recovering part or all of the expenditure to the extent recovery is possible, establishment of safeguards to prevent future political expenditures, and where full recovery is not possible, such additional corrective action as is prescribed by the Secretary by regulations. (4) Taxable period

“organization manager” applies in that section

The term “organization manager” means— (A) any officer, director, or trustee of the organization (or individual having powers or responsibilities similar to those of officers, directors, or trustees of the organization), and (B) with respect to any expenditure, any employee of the organization having authority or responsibility with respect to such expenditure. (3) Correction

“political expenditure” applies in that section

The term “political expenditure” means any amount paid or incurred by a section 501(c)(3) organization in any participation in, or intervention in (including the publication or distribution of statements), any political campaign on behalf of (or in opposition to) any candidate for public office. (2) Certain other expenditures included In the case of an organization which is formed primarily for purposes of promoting the candidacy (or prospective candidacy) of an individual for public office (or which is effectively controlled by a candidate or prospective candidate and which is availed of primarily for such purposes),

“section 501(c)(3) organization” applies in that section

The term “section 501(c)(3) organization” means any organization which (without regard to any political expenditure) would be described in section 501(c)(3) and exempt from taxation under section 501(a). (2) Organization manager

“taxable period” applies in that section

The term “taxable period” means, with respect to any political expenditure, the period beginning with the date on which the political expenditure occurs and ending on the earlier of— (A) the date of mailing a notice of deficiency under section 6212 with respect to the tax imposed by subsection (a)(1), or (B) the date on which tax imposed by subsection (a)(1) is assessed.

“35-percent controlled entity” applies in that section

The term “35-percent controlled entity” means— (i) a corporation in which persons described in subparagraph (A) or (B) of paragraph (1) own more than 35 percent of the total combined voting power, (ii) a partnership in which such persons own more than 35 percent of the profits interest, and (iii) a trust or estate in which such persons own more than 35 percent of the beneficial interest. (B) Constructive ownership rules Rules similar to the rules of paragraphs (3) and (4) of section 4946(a) shall apply for purposes of this paragraph.

“applicable tax-exempt organization” applies throughout its subchapter

the term “applicable tax-exempt organization” means— (1) any organization which (without regard to any excess benefit) would be described in paragraph (3), (4), or (29) of section 501(c) and exempt from tax under section 501(a), and (2) any organization which was described in paragraph (1) at any time during the 5-year period ending on the date of the transaction. Such term shall not include a private foundation (as defined in section 509(a)). (f) Other definitions For purposes of this section— (1) Disqualified person

“correct” applies in that section

The terms “correction” and “correct” mean, with respect to any excess benefit transaction, undoing the excess benefit to the extent possible, and taking any additional measures necessary to place the organization in a financial position not worse than that in which it would be if the disqualified person were dealing under the highest fiduciary standards, except that in the case of any correction of an excess benefit transaction described in subsection (c)(2), no amount repaid in a manner prescribed by the Secretary may be held in any donor advised fund.

“correction” applies in that section

The terms “correction” and “correct” mean, with respect to any excess benefit transaction, undoing the excess benefit to the extent possible, and taking any additional measures necessary to place the organization in a financial position not worse than that in which it would be if the disqualified person were dealing under the highest fiduciary standards, except that in the case of any correction of an excess benefit transaction described in subsection (c)(2), no amount repaid in a manner prescribed by the Secretary may be held in any donor advised fund.

“disqualified person” applies in that section

The term “disqualified person” means, with respect to any transaction— (A) any person who was, at any time during the 5-year period ending on the date of such transaction, in a position to exercise substantial influence over the affairs of the organization, (B) a member of the family of an individual described in subparagraph (A), (C) a 35-percent controlled entity, (D) any person who is described in subparagraph (A), (B), or (C) with respect to an organization described in section 509(a)(3) and organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of the applicable tax-exempt organization, (E) which involves a donor advised fund …

“excess benefit” applies in that section

The term “excess benefit” means the excess referred to in subparagraph (A). (2) Special rules for donor advised funds In the case of any donor advised fund (as defined in section 4966(d)(2))—;

“excess benefit transaction” applies in that section

The term “excess benefit transaction” means any transaction in which an economic benefit is provided by an applicable tax-exempt organization directly or indirectly to or for the use of any disqualified person if the value of the economic benefit provided exceeds the value of the consideration (including the performance of services) received for providing such benefit. For purposes of the preceding sentence, an economic benefit shall not be treated as consideration for the performance of services unless such organization clearly indicated its intent to so treat such benefit. (B) Excess benefit

“investment advisor” applies in that section

the term “investment advisor” means, with respect to any sponsoring organization (as defined in section 4966(d)(1)), any person (other than an employee of such organization) compensated by such organization for managing the investment of, or providing investment advice with respect to, assets maintained in donor advised funds (as defined in section 4966(d)(2)) owned by such organization.

“organization manager” applies in that section

The term “organization manager” means, with respect to any applicable tax-exempt organization, any officer, director, or trustee of such organization (or any individual having powers or responsibilities similar to those of officers, directors, or trustees of the organization). (3) 35-percent controlled entity (A) In general

“substantial contributor” applies in that section

The term “substantial contributor” means any person who contributed or bequeathed an aggregate amount of more than $5,000 to the organization, if such amount is more than 2 percent of the total contributions and bequests received by the organization before the close of the taxable year of the organization in which the contribution or bequest is received by the organization from such person. In the case of a trust, such term also means the creator of the trust. Rules similar to the rules of subparagraphs (B) and (C) of section 507(d)(2) shall apply for purposes of this subparagraph.

“taxable period” applies in that section

The term “taxable period” means, with respect to any excess benefit transaction, the period beginning with the date on which the transaction occurs and ending on the earliest of— (A) the date of mailing a notice of deficiency under section 6212 with respect to the tax imposed by subsection (a)(1), or (B) the date on which the tax imposed by subsection (a)(1) is assessed. (6) Correction

“applicable tax-exempt organization” applies in that section

The term “applicable tax-exempt organization” means any organization which for the taxable year— (A) is exempt from taxation under section 501(a), (B) is a farmers’ cooperative organization described in section 521(b)(1), (C) has income excluded from taxation under section 115(1), or (D) is a political organization described in section 527(e)(1). (2) Covered employee For purposes of this section,

“covered employee” applies in that section

the term “covered employee” means any employee of an applicable tax-exempt organization (or any predecessor of such an organization) and any former employee of such an organization (or predecessor) who was such an employee during any taxable year beginning after December 31, 2016 . (3) Remuneration For purposes of this section: (A) In general

“excess parachute payment” applies in that section

The term “excess parachute payment” means an amount equal to the excess of any parachute payment over the portion of the base amount allocated to such payment. (B) Parachute payment

“parachute payment” applies in that section

The term “parachute payment” means any payment in the nature of compensation to (or for the benefit of) a covered employee if— (i) such payment is contingent on such employee’s separation from employment with the employer, and (ii) the aggregate present value of the payments in the nature of compensation to (or for the benefit of) such individual which are contingent on such separation equals or exceeds an amount equal to 3 times the base amount.

“remuneration” applies in that section

The term “remuneration” means wages (as defined in section 3401(a)), except that such term shall not include any designated Roth contribution (as defined in section 402A(c)) and shall include amounts required to be included in gross income under section 457(f). (B) Exception for remuneration for medical services The term “remuneration” shall not include the portion of any remuneration paid to a licensed medical professional (including a veterinarian) which is for the performance of medical or veterinary services by such professional.

“qualified first tier tax” applies in that 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”.

“correct” applies throughout its subchapter

the term “correct” has the same meaning as when used in the section which imposes the second tier tax. (2) Special rules

“correction period” applies throughout its subchapter

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.

“first tier tax” applies throughout its 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,

“second tier tax” applies throughout its 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,

“taxable event” applies throughout its 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),

“entity manager” applies in that section

the term “entity manager” means— (1) in the case of an entity described in paragraph (1), (2), or (3) of subsection (c)— (A) the person with authority or responsibility similar to that exercised by an officer, director, or trustee of an organization, and (B) with respect to any act, the person having authority or responsibility with respect to such act, and (2) in the case of an entity described in paragraph (4), (5), (6), or (7) of subsection (c), the person who approves or otherwise causes the entity to be a party to the prohibited tax shelter transaction.

“listed transaction” applies in that section

The term “listed transaction” has the meaning given such term by section 6707A(c)(2). (C) Prohibited reportable transaction

“prohibited reportable transaction” applies in that section

The term “prohibited reportable transaction” means any confidential transaction or any transaction with contractual protection (as defined under regulations prescribed by the Secretary) which is a reportable transaction (as defined in section 6707A(c)(1)). (2) Subsequently listed transaction

“prohibited tax shelter transaction” applies in that section

The term “prohibited tax shelter transaction” means— (i) any listed transaction, and (ii) any prohibited reportable transaction. (B) Listed transaction

“subsequently listed transaction” applies in that section

The term “subsequently listed transaction” means any transaction to which a tax-exempt entity is a party and which is determined by the Secretary to be a listed transaction at any time after the entity has become a party to the transaction. Such term shall not include a transaction which is a prohibited reportable transaction at the time the entity became a party to the transaction.

“tax-exempt entity” applies in that section

the term “tax-exempt entity” means an entity which is— (1) described in section 501(c) or 501(d), (2) described in section 170(c) (other than the United States), (3) an Indian tribal government (within the meaning of section 7701(a)(40)), (4) described in paragraph (1), (2), or (3) of section 4979(e), (5) a program described in section 529, (6) an eligible deferred compensation plan described in section 457(b) which is maintained by an employer described in section 457(e)(1)(A), (7) an arrangement described in section 4973(a), or (8) a program described in section 529A. (d) Entity manager For purposes of this section,

“disqualified supporting organization” applies throughout its subchapter

The term “disqualified supporting organization” means, with respect to any distribution— (i) any type III supporting organization (as defined in section 4943(f)(5)(A)) which is not a functionally integrated type III supporting organization (as defined in section 4943(f)(5)(B)), and (ii) any organization which is described in subparagraph (B) or (C) if— (I) the donor or any person designated by the donor for the purpose of advising with respect to distributions from a donor advised fund (and any related parties) directly or indirectly controls a supported organization (as defined in section 509(f)(3)) of such organization, or (II) the Secretary determines by regulations that a distribution …

“donor advised fund” applies throughout its subchapter

the term “donor advised fund” means a fund or account— (i) which is separately identified by reference to contributions of a donor or donors, (ii) which is owned and controlled by a sponsoring organization, and (iii) with respect to which a donor (or any person appointed or designated by such donor) has, or reasonably expects to have, advisory privileges with respect to the distribution or investment of amounts held in such fund or account by reason of the donor’s status as a donor.

“fund manager” applies throughout its subchapter

The term “fund manager” means, with respect to any sponsoring organization— (A) an officer, director, or trustee of such sponsoring organization (or an individual having powers or responsibilities similar to those of officers, directors, or trustees of the sponsoring organization), and (B) with respect to any act (or failure to act), the employees of the sponsoring organization having authority or responsibility with respect to such act (or failure to act). (4) Disqualified supporting organization (A) In general

“sponsoring organization” applies throughout its subchapter

The term “sponsoring organization” means any organization which— (A) is described in section 170(c) (other than in paragraph (1) thereof, and without regard to paragraph (2)(A) thereof), (B) is not a private foundation (as defined in section 509(a)), and (C) maintains 1 or more donor advised funds. (2) Donor advised fund (A) In general Except as provided in subparagraph (B) or (C),

“taxable distribution” applies in that section

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) to the sponsoring organization of such donor advised fund, or (C) to any other donor advised fund.

“applicable educational institution” applies throughout its subchapter

the term “applicable educational institution” means an eligible educational institution (as defined in section 25A(f)(2))— (1) which had at least 3,000 tuition-paying students during the preceding taxable year, (2) more than 50 percent of the tuition-paying students of which are located in the United States, (3) the student adjusted endowment of which is at least $500,000, and (4) which is not described in the first sentence of section 511(a)(2)(B) (relating to State colleges and universities). (d) Student adjusted endowment For purposes of this section,

“applicable percentage” applies in that section

the term “applicable percentage” means— (1) 1.4 percent in the case of an institution with a student adjusted endowment of at least $500,000, and not in excess of $750,000, (2) 4 percent in the case of an institution with a student adjusted endowment in excess of $750,000, and not in excess of $2,000,000, and (3) 8 percent in the case of an institution with a student adjusted endowment in excess of $2,000,000. (c) Applicable educational institution For purposes of this subchapter,

“Federal funds” applies in that section

The term “Federal funds” includes any grant made by, and any payment made under any contract with, any Federal agency to the applicable educational institution, any related organization, or any student or faculty member referred to in subclause (II).

“Federally-subsidized royalty income” applies in that section

The term “Federally-subsidized royalty income” means any otherwise-regulatory-exempt royalty income if any Federal funds were used in the research, development, or creation of the patent, copyright, or other intellectual or intangible property from which such royalty income is derived. (II) Otherwise-regulatory-exempt royalty income For purposes of this subparagraph,

“otherwise-regulatory-exempt royalty income” applies in that section

the term “otherwise-regulatory-exempt royalty income” means royalty income which (but for this subparagraph) would not be taken into account as gross investment income by reason of being derived from patents, copyrights, or other intellectual or intangible property which resulted from the work of students or faculty members in their capacities as such with the applicable educational institution. (III) Federal funds

“related organization” applies in that section

the term “related organization” means, with respect to an educational institution, any organization which— (A) controls, or is controlled by, such institution, (B) is controlled by 1 or more persons which also control such institution, or (C) is a supported organization (as defined in section 509(f)(3)), or an organization described in section 509(a)(3), during the taxable year with respect to such institution.

“student adjusted endowment” applies in that section

the term “student adjusted endowment” means, with respect to any institution for any taxable year— (1) the aggregate fair market value of the assets of such institution (determined as of the end of the preceding taxable year), other than those assets which are used directly in carrying out the institution’s exempt purpose, divided by (2) the number of students of such institution.

“accumulated funding deficiency” applies in that section

The term “accumulated funding deficiency” has the meaning given to such term by section 431. (2) Correct

“controlled group” applies in that section

the term “controlled group” means any group treated as a single employer under subsection (b), (c), (m), or ( o ) of section 414. (f) Failure to pay liquidity shortfall (1) In general In the case of a plan to which section 430(j)(4) or 433(f) applies, there is hereby imposed a tax of 10 percent of the excess (if any) of— (A) the amount of the liquidity shortfall for any quarter, over (B) the amount of such shortfall which is paid by the required installment under section 430(j) or 433(f), whichever is applicable, for such quarter (but only if such installment is paid on or before the due date for such installment).

“correct” applies in that section

The term “correct” means, with respect to an accumulated funding deficiency or CSEC accumulated funding deficiency, the contribution, to or under the plan, of the amount necessary to reduce such accumulated funding deficiency or CSEC accumulated funding deficiency as of the end of a plan year in which such deficiency arose to zero. (3) Taxable period

“CSEC accumulated funding deficiency” applies in that section

The term “CSEC accumulated funding deficiency” means the accumulated funding deficiency determined under section 433. (d) Notification of the Secretary of Labor Before issuing a notice of deficiency with respect to the tax imposed by subsection (a) or (b), the Secretary shall notify the Secretary of Labor and provide him a reasonable opportunity (but not more than 60 days)— (1) to require the employer responsible for contributing to or under the plan to eliminate the accumulated funding deficiency, CSEC accumulated funding deficiency, or unpaid minimum required contribution, whichever is applicable, or (2) to comment on the imposition of such tax.

“plan sponsor” applies in that section

the term “plan sponsor” has the meaning given such term by section 432(j)(9). (5) Waiver In the case of a failure described in paragraph (2) or (3) which is due to reasonable cause and not to willful neglect, the Secretary may waive part or all of the tax imposed by this subsection. For purposes of this paragraph, reasonable cause includes unanticipated and material market fluctuations, the loss of a significant contributing employer, or other factors to the extent that the payment of tax under this subsection with respect to the failure would be excessive or otherwise inequitable relative to the failure involved.

“taxable period” applies in that section

The term “taxable period” means, with respect to an accumulated funding deficiency, CSEC accumulated funding deficiency, or unpaid minimum required contribution, whichever is applicable, the period beginning with the end of the plan year in which there is an accumulated funding deficiency, CSEC accumulated funding deficiency, or unpaid minimum required contribution, whichever is applicable, and ending on the earlier of— (A) the date of mailing of a notice of deficiency with respect to the tax imposed by subsection (a), or (B) the date on which the tax imposed by subsection (a) is assessed. (4) Unpaid minimum required contribution (A) In general

“unpaid minimum required contribution” applies in that section

The term “unpaid minimum required contribution” means, with respect to any plan year, any minimum required contribution under section 430 for the plan year which is not paid on or before the due date (as determined under section 430(j)(1)) for the plan year. (B) Ordering rule Any payment to or under a plan for any plan year shall be allocated first to unpaid minimum required contributions for all preceding plan years on a first-in, first-out basis and then to the minimum required contribution under section 430 for the plan year. (5) CSEC accumulated funding deficiency

“employer” applies in that section

the term “employer” means the person treated as the employer under section 401(c)(4).

“nondeductible contributions” applies in that section

The term “nondeductible contributions” means, with respect to any qualified employer plan, the sum of— (A) the excess (if any) of— (i) the amount contributed for the taxable year by the employer to or under such plan, over (ii) the amount allowable as a deduction under section 404 for such contributions (determined without regard to subsection (e) thereof), and (B) the amount determined under this subsection for the preceding taxable year reduced by the sum of— (i) the portion of the amount so determined returned to the employer during the taxable year, and (ii) the portion of the amount so determined deductible under section 404 for the taxable year (determined without regard to subsection …

“qualified employer plan” applies in that section

The term “qualified employer plan” means— (i) any plan meeting the requirements of section 401(a) which includes a trust exempt from tax under section 501(a), (ii) an annuity plan described in section 403(a), (iii) any simplified employee pension (within the meaning of section 408(k)), and (iv) any simple retirement account (within the meaning of section 408(p)). (B) Exemption for governmental and tax exempt plans The term “qualified employer plan” does not include a plan described in subparagraph (A) or (B) of section 4980(c)(1).

“excess contributions” applies in that section

the term “excess contributions” means the sum of— (1) the excess (if any) of— (A) the amount contributed for the taxable year to the accounts or for the annuities (other than a contribution to a Roth IRA or a rollover contribution described in section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16)), over (B) the amount allowable as a deduction under section 219 for such contributions, and (2) the amount determined under this subsection for the preceding taxable year reduced by the sum of— (A) the distributions out of the account for the taxable year which were included in the gross income of the payee under section 408(d)(1), (B) the distributions out of the account for the taxable …

“correction window” applies in that section

the term “correction window” means the period of time beginning on the date on which the tax under subsection (a) is imposed with respect to a shortfall of distributions from a plan described in subsection (a), and ending on the earliest of— (A) the date of mailing a notice of deficiency with respect to the tax imposed by subsection (a) under section 6212, (B) the date on which the tax imposed by subsection (a) is assessed, or (C) the last day of the second taxable year that begins after the end of the taxable year in which the tax under subsection (a) is imposed.

“minimum required distribution” applies in that section

the term “minimum required distribution” means the minimum amount required to be distributed during a taxable year under section 401(a)(9), 403(b)(10), 408(a)(6), 408(b)(3), or 457(d)(2), as the case may be, as determined under regulations prescribed by the Secretary. (c) Qualified retirement plan For purposes of this section,

“qualified retirement plan” applies in that section

the term “qualified retirement plan” means— (1) a plan described in section 401(a) which includes a trust exempt from tax under section 501(a), (2) an annuity plan described in section 403(a), (3) an annuity contract described in section 403(b), (4) an individual retirement account described in section 408(a), or (5) an individual retirement annuity described in section 408(b). Such term includes any plan, contract, account, or annuity which, at any time, has been determined by the Secretary to be such a plan, contract, account, or annuity.

“adequate consideration” applies in that section

The term “adequate consideration” means— (A) in the case of a security for which there is a generally recognized market— (i) the price of the security prevailing on a national securities exchange which is registered under section 6 of the Securities Exchange Act of 1934, taking into account factors such as the size of the transaction and marketability of the security, or (ii) if the security is not traded on such a national securities exchange, a price not less favorable to the plan than the offering price for the security as established by the current bid and asked prices quoted by persons independent of the issuer and of the party in interest, taking into account factors such as the size …

“amount involved” applies in that section

The term “amount involved” means, with respect to a prohibited transaction, the greater of the amount of money and the fair market value of the other property given or the amount of money and the fair market value of the other property received; except that, in the case of services described in paragraphs (2) and (10) of subsection (d) the amount involved shall be only the excess compensation.

“block trade” applies in that section

The term “block trade” means any trade of at least 10,000 shares or with a market value of at least $200,000 which will be allocated across two or more unrelated client accounts of a fiduciary. (10) Adequate consideration

“commodity” applies in that section

The term “commodity” has the meaning given such term by section 475(e)(2) (without regard to subparagraph (D)(iii) thereof). (iii) Correct

“correct” applies in that section

The terms “correction” and “correct” mean, with respect to a prohibited transaction, undoing the transaction to the extent possible, but in any case placing the plan in a financial position not worse than that in which it would be if the disqualified person were acting under the highest fiduciary standards.

“correction” applies in that section

The terms “correction” and “correct” mean, with respect to a prohibited transaction, undoing the transaction to the extent possible, but in any case placing the plan in a financial position not worse than that in which it would be if the disqualified person were acting under the highest fiduciary standards.

“correction period” applies in that section

the term “correction period” means the 14-day period beginning on the date on which the disqualified person discovers, or reasonably should have discovered, that the transaction would (without regard to this paragraph and subsection (d)(23)) constitute a prohibited transaction. (B) Exceptions (i) Employer securities Subsection (d)(23) does not apply to any transaction between a plan and a plan sponsor or its affiliates that involves the acquisition or sale of an employer security (as defined in section 407(d)(1) of the Employee Retirement Income Security Act of 1974) or the acquisition, sale, or lease of employer real property (as defined in section 407(d)(2) of such Act).

“disqualified person” applies in that section

the term “disqualified person” means a person who is— (A) a fiduciary; (B) a person providing services to the plan; (C) an employer any of whose employees are covered by the plan; (D) an employee organization any of whose members are covered by the plan; (E) an owner, direct or indirect, of 50 percent or more of— (i) the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of a corporation, (ii) the capital interest or the profits interest of a partnership, or (iii) the beneficial interest of a trust or unincorporated enterprise, which is an employer or an employee organization described in subparagraph (C) or (D); (F) a member …

“eligible investment advice arrangement” applies in that section

the term “eligible investment advice arrangement” means an arrangement— (i) which either— (I) provides that any fees (including any commission or other compensation) received by the fiduciary adviser for investment advice or with respect to the sale, holding, or acquisition of any security or other property for purposes of investment of plan assets do not vary depending on the basis of any investment option selected, or (II) uses a computer model under an investment advice program meeting the requirements of subparagraph (C) in connection with the provision of investment advice by a fiduciary adviser to a participant or beneficiary, and (ii) with respect to which the requirements of …

“eligible investment expert” applies in that section

The term “eligible investment expert” means any person which meets such requirements as the Secretary of Labor may provide and which does not bear any material affiliation or contractual relationship with any investment adviser or a related person thereof (or any employee, agent, or registered representative of the investment adviser or related person).

“employee stock ownership plan” applies in that section

The term “employee stock ownership plan” means a defined contribution plan— (A) which is a stock bonus plan which is qualified, or a stock bonus and a money purchase plan both of which are qualified under section 401(a), and which are designed to invest primarily in qualifying employer securities; and (B) which is otherwise defined in regulations prescribed by the Secretary.

“fiduciary” applies in that section

the term “fiduciary” means any person who— (A) exercises any discretionary authority or discretionary control respecting management of such plan or exercises any authority or control respecting management or disposition of its assets, (B) renders investment advice for a fee or other compensation, direct or indirect, with respect to any moneys or other property of such plan, or has any authority or responsibility to do so, or (C) has any discretionary authority or discretionary responsibility in the administration of such plan. Such term includes any person designated under section 405(c)(1)(B) of the Employee Retirement Income Security Act of 1974.

“fiduciary adviser” applies in that section

The term “fiduciary adviser” means, with respect to a plan, a person who is a fiduciary of the plan by reason of the provision of investment advice referred to in subsection (e)(3)(B) by the person to a participant or beneficiary of the plan and who is— (I) registered as an investment adviser under the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–1 et seq.) or under the laws of the State in which the fiduciary maintains its principal office and place of business, (II) a bank or similar financial institution referred to in subsection (d)(4) or a savings association (as defined in section 3(b)(1) of the Federal Deposit Insurance Act ( 12 U.S.C.

“plan” applies in that section

the term “plan” means— (A) a trust described in section 401(a) which forms a part of a plan, or a plan described in section 403(a), which trust or plan is exempt from tax under section 501(a), (B) an individual retirement account described in section 408(a), (C) an individual retirement annuity described in section 408(b), (D) an Archer MSA described in section 220(d), (E) a health savings account described in section 223(d), (F) a Coverdell education savings account described in section 530, or (G) a trust, plan, account, or annuity which, at any time, has been determined by the Secretary to be described in any preceding subparagraph of this paragraph.

“prohibited transaction” applies in that section

the term “prohibited transaction” means any direct or indirect— (A) sale or exchange, or leasing, of any property between a plan and a disqualified person; (B) lending of money or other extension of credit between a plan and a disqualified person; (C) furnishing of goods, services, or facilities between a plan and a disqualified person; (D) transfer to, or use by or for the benefit of, a disqualified person of the income or assets of a plan; (E) act by a disqualified person who is a fiduciary whereby he deals with the income or assets of a plan in his own interest or for his own account; or (F) receipt of any consideration for his own personal account by any disqualified person who is a …

“qualifying employer security” applies in that section

The term “qualifying employer security” means any employer security within the meaning of section 409( l ). If any moneys or other property of a plan are invested in shares of an investment company registered under the Investment Company Act of 1940, the investment shall not cause that investment company or that investment company’s investment adviser or principal underwriter to be treated as a fiduciary or a disqualified person for purposes of this section, except when an investment company or its investment adviser or principal underwriter acts in connection with a plan covering employees of the investment company, its investment adviser, or its principal underwriter.

“security” applies in that section

The term “security” has the meaning given such term by section 475(c)(2) (without regard to subparagraph (F)(iii) and the last sentence thereof). (ii) Commodity

“shareholder-employee” applies in that section

the term “shareholder-employee” means an employee or officer of an S corporation who owns (or is considered as owning within the meaning of section 318(a)(1)) more than 5 percent of the outstanding stock of the corporation on any day during the taxable year of such corporation.

“taxable period” applies in that section

The term “taxable period” means, with respect to any prohibited transaction, the period beginning with the date on which the prohibited transaction occurs and ending on the earliest of— (A) the date of mailing a notice of deficiency with respect to the tax imposed by subsection (a) under section 6212, (B) the date on which the tax imposed by subsection (a) is assessed, or (C) the date on which correction of the prohibited transaction is completed.

“disqualified benefit” applies in that section

The term “disqualified benefit” means— (A) any post-retirement medical benefit or life insurance benefit provided with respect to a key employee if a separate account is required to be established for such employee under section 419A(d) and such payment is not from such account, (B) any post-retirement medical benefit or life insurance benefit provided with respect to an individual in whose favor discrimination is prohibited unless the plan meets the requirements of section 505(b) with respect to such benefit (whether or not such requirements apply to such plan), and (C) any portion of a welfare benefit fund reverting to the benefit of the employer.

“excess fringe benefits” applies in that section

the term “excess fringe benefits” means, with respect to any calendar year— (1) the aggregate value of the fringe benefits provided by the employer during the calendar year which were not includible in gross income under paragraphs (1) and (2) of section 132(a), over (2) 1 percent of the aggregate amount of compensation— (A) which was paid by the employer during such calendar year to employees, and (B) was includible in gross income for purposes of chapter 1.

“disposition” applies in that section

The term “disposition” includes any distribution. (5) Employer securities

“eligible worker-owned cooperative” applies in that section

The term “eligible worker-owned cooperative” has the meaning given to such term by section 1042(c)(2). (4) Disposition

“employee stock ownership plan” applies in that section

The term “employee stock ownership plan” has the meaning given to such term by section 4975(e)(7). (2) Qualified securities