26 U.S.C. § 4963
§ 4963. Definitions
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
History
Added in 1980 by the Public Law 96-596. Last changed August 17, 2006 by the Public Law 109-280.
Every change, newest first (5)
- August 17, 2006Public Law 109-280
- July 30, 1996Public Law 104-168
- December 22, 1987Omnibus Budget Reconciliation Act of 1987
- July 18, 1984Deficit Reduction Act of 1984
- December 24, 1980Public Law 96-596 · added this section
The law as written
Current through Public Law 119-102. Amendment notes omitted.
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.
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.
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.
For purposes of this subchapter—
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.
The term “correct” means—
in the case of the second tier tax imposed by section 4942(b), reducing the amount of the undistributed income to zero,
in the case of the second tier tax imposed by section 4943(b), reducing the amount of the excess business holdings to zero, and
in the case of the second tier tax imposed by section 4944, removing the investment from jeopardy.
For purposes of this 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—
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
any other period which the Secretary determines is reasonable and necessary to bring about correction of the taxable event.
For purposes of paragraph (1), the taxable event shall be treated as occurring—
in the case of section 4942, on the first day of the taxable year for which there was a failure to distribute income,
in the case of section 4943, on the first day on which there are excess business holdings,
in the case of section 4971, on the last day of the plan year in which there is an accumulated funding deficiency, and
in any other case, the date on which such event occurred.