Treasury Regulations (26 C.F.R.)
26 CFR § 53.4941(c)-1
Special rules.
# (a) Joint and several liability.
(1) In any case where more than one person is liable for the tax imposed by any paragraph of section 4941 (a) or (b), all such persons shall be jointly and severally liable for the taxes imposed under such paragraph with respect to such act of self-dealing.
(2) The provisions of this paragraph may be illustrated by the following example:
Example.
A and B, who are managers of private foundation X, lend one of the foundation's paintings to G, a disqualified person, for display in G's office, in a transaction which gives rise to liability for tax under section 4941(a)(2) (relating to tax on foundation managers). An initial tax is imposed on both A and B with respect to the act of lending the foundation's painting to G. A and B are jointly and severally liable for the tax.
# (b) Limits on liability for management.
(1) The maximum aggregate amount of tax collectible under section 4941(a)(2) from all foundation managers with respect to any one act of self-dealing shall be $10,000, and the maximum aggregate amount of tax collectible under section 4941(b)(2) from all foundation managers with respect to any one act of self-dealing shall be $10,000.
(2) The provisions of this paragraph may be illustrated by the following example:
Example.
A, a disqualified person with respect to private foundation Y, sells certain real estate having a fair market value of $500,000 to Y for $500,000 in cash. B, C, and D, all the managers of foundation Y, authorized the purchase on Y's behalf knowing that such purchase was an act of self-dealing. The actions of B, C, and D in approving the purchase were willful and not due to reasonable cause. Initial taxes are imposed upon the foundation managers under subsections (a)(2) and (c)(2) of section 4941. The tax to be paid by the foundation managers is $10,000 (the lesser of $10,000 or 2
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In this part (40 sections)
- 53.4940-1 · Excise tax on net investment income.
- 53.4941(a)-1 · Imposition of initial taxes.
- 53.4941(b)-1 · Imposition of additional taxes.
- 53.4941(c)-1 · Special rules.
- 53.4941(d)-1 · Definition of self-dealing.
- 53.4941(d)-2 · Specific acts of self-dealing.
- 53.4941(d)-3 · Exceptions to self-dealing.
- 53.4941(d)-4 · Transitional rules.
- 53.4941(e)-1 · Definitions.
- 53.4941(f)-1 · Effective dates.
- 53.4942(a)-1 · Taxes for failure to distribute income.
- 53.4942(a)-2 · Computation of undistributed income.
- 53.4942(a)-3 · Qualifying distributions defined.
- 53.4942(b)-1 · Operating foundations.
- 53.4942(b)-2 · Alternative tests.
- 53.4942(b)-3 · Determination of compliance with operating foundation…
- 53.4943-1 · General rule; purpose.
- 53.4943-2 · Imposition of tax on excess business holdings of private…
- 53.4943-3 · Determination of excess business holdings.
- 53.4943-4 · Present holdings.
- 53.4943-5 · Present holdings acquired by trust or a will.
- 53.4943-6 · Five-year period to dispose of gifts, bequests, etc.
- 53.4943-7 · Special rules for readjustments involving grandfathered…
- 53.4943-8 · Business holdings; constructive ownership.
- 53.4943-9 · Business holdings; certain periods.
- 53.4943-10 · Business enterprise; definition.
- 53.4943-11 · Effective/applicability date.
- 53.4944-1 · Initial taxes.
- 53.4944-2 · Additional taxes.
- 53.4944-3 · Exception for program-related investments.
- 53.4944-4 · Special rules.
- 53.4944-5 · Definitions.
- 53.4944-6 · Special rules for investments made prior to January 1, 1970.
- 53.4945-1 · Taxes on taxable expenditures.
- 53.4945-2 · Propaganda influencing legislation.
- 53.4945-3 · Influencing elections and carrying on voter registration…
- 53.4945-4 · Grants to individuals.
- 53.4945-5 · Grants to organizations.
- 53.4945-6 · Expenditures for noncharitable purposes.
- 53.4946-1 · Definitions and special rules.